Allegations by the Mail that Ofgem has done a deal with energy firms to help them hide their profits might make a good headline, but are completely wrong. We have put pressure on energy companies to explain why, when wholesale prices have fallen significantly, there has been very little reduction in prices for consumers on standard tariffs. While recent price cuts by E.ON are a step in the right direction, we believe there is scope for further cuts to energy bills by suppliers. Our concern that the market is not working for consumers led to us referring the market to the CMA for investigation.
Ofgem has led the way in making the industry as transparent as possible. All big companies have to publish detailed financial accounts to show how much money they made and how they made it. So there is nowhere to hide profits. We are also undertaking a review of one of the indicators we publish on trends in costs that impact on bills, and will consult on this soon after the CMA has published its findings in March.