British watchdog orders electricity reforms
The “big six” power suppliers should sell off up to a fifth of their electricity output in a move to “break the stranglehold” they have over the market in the UK, the British energy watchdog said today.
The major suppliers “failed to play it straight” with consumers, according to regulator Ofgem, and have eight weeks to comply with a series of radical proposals to overhaul the industry or face a referral to the Competition Commission.
The reforms include reducing the number of tariffs suppliers offer to avoid confusion over price and improving transparency by appointing an independent accounting firm to investigate the suppliers’ books.
An additional investigation into Scottish Power’s standard credit prices has also been launched.
Ofgem launched its review in November after it emerged that price hikes had seen suppliers’ profit margins soar by 38%.
