"Thorough Interrogation" of energy firms' finances necessary as Ofgem intervenes in market

As Ofgem announces it is ‘tearing down the barriers to competition’ in the energy market Citizens Advice and Consumer Futures say a ‘thorough interrogation’ is necessary and has been a long time coming.

Citizens Advice Chief Executive Gillian Guy said:

“For too long the relationship between generation and supply in the energy industry has been veiled in mystery. Scrutinising the finances of the big six is fundamental to increasing competition in the market.

“Energy bills have gone up by 33 per cent since 2010 and Citizens Advice is seeing families who are making stark choices between heating their homes and putting food on the table.  This move is long overdue.

“Increases in wholesale prices are often blamed for putting up bills. When firms are making hundreds of millions of pounds in profits, consumers question how suppliers  are able to prosper at the expense of their own financial struggles.

“We have long been calling on the regulator to intervene in the wholesale market to make it more transparent and six years later we are starting to see some appropriate action. While these measures will give consumers greater insight into the pricing structures of the Big Six energy suppliers - we still need a fundamental competition review of the energy market to establish whether it is working for consumers.

“Ofgem must make today’s intervention count by ensuring it is the start of a transformation of the energy market which delivers competitive and affordable prices for consumers.”

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Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.