***OFGEM - To investigate energy companies who have recently increased prices***

[rebel11]

http://www.bbc.co.uk/news/business-11842686

[MARTIN3030]

There have been lots of investigations before-the difference with this one is that Ofgem will have access to accounts of Energy providers.

They will also be looking to see if previous notifications on business practices have been acted upon and complied with.

[MARTIN3030]

More info here;

 

Ofgem to review the effectiveness of the retail energy market to see if further action is needed to protect customers - press release

- PDF - 268Kb

[paddygibbons]

I think we all no the answer to that question

[labrat]

hmmm bets on the investigators bank account level increasing around the time that they announce theres no case to answer

[paddygibbons]

Either that or the investigators get free Gas and Electricity for life, corruption everywhere

[rebel11]

They will investigate, then pass to another department who have no powers etc.

[speedfreek]

Have you not read Dec 7th issue of Private Eye?

 

The gist was..... in 93/94 Centrica (aka British Gas) raised it's prices and shed 600,000 customers to other companies. Now here the interesting bit as wholesale gas is pre bought in advance the companies who took on these leaving BG customers then had to go back to the whole sale gas market to buy the gas to supply these new customers. As BG had already bought the gas for these customers there was now a shortage of whole sale gas and thus the whole sale gas prices increased due to the extra demand caused by the leaving customers.

 

Summary: any increase in price is a self fulfilling prophecy which raises prices in all other aspects of the energy market and thus justifies the increase. Since this also equates to a nice little earner for the government through increased tax revenues. Don't expect any changes soon.

[rebel11]

The main problem with Gas in a nutshell is, the UK doesn't really have any storage facilities, overseas companies buy North Sea gas in the summer months from the

UK, then store it. They sell it back to the UK during our winter months at higher prices.