11th Jun 2014 05:59
LONDON (Alliance News) - UK Energy regulator Ofgem has said that the big energy suppliers in the UK must engage with customers over the impact of falling wholesale costs on energy prices or risk further undermining public confidence.
In recent months, wholesale gas and electricity prices have dropped noticeably, with spot gas prices down 38% in early June compared with the previous year and forward prices for the coming winter down 16% for gas and 9% for electricity, according to Ofgem.
Wholesale costs make up nearly half of a household energy bill and Ofgem said in a statement on Tuesday that "suppliers are yet to reduce their prices for existing customers to reflect the wholesale cost changes".
The Big Six energy firms in the UK are British Gas, a subsidiary of Centrica PLC, E.ON, EDF, Npower, ScottishPower and SSE PLC.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
CentricaSSE