15th Jan 2016 11:18
LONDON (Alliance News) - UK industry regulator Ofgem has accused energy companies in the country of over-charging customers as prices have failed to fall in line with significant drops in wholesale costs, the BBC reported Friday.
Ofgem Chief Executive Dermot Nolan told the BBC that domestic gas and electricity prices should be cheaper "for the vast majority of people", with prices failing to fall at the same rate as wholesale energy costs.
Wholesale energy costs have fallen by around a third over the last 12 to 18 months, and make up nearly half of a domestic bill that is paid by customers.
Pressure is mounting on the UK's big six energy suppliers to cut their prices in line with falling costs after the latest analysis showed wholesale gas and electricity prices in the UK hit a five-year low at the end of 2015, the BBC said.
http://www.bbc.co.uk/news/business-35321723
London-listed energy companies include Centrica PLC, which owns British Gas, SSE PLC, biomass and coal power generator Drax Group PLC and National Grid PLC. Retailers Marks & Spencer Group PLC and J Sainsbury PLC also have energy supply divisions in the UK.
The ever-growing spotlight on the energy industry in the UK is also shining down on the UK water industry, with the industry regulator Ofwat being accused earlier this week by the Public Accounts Committee of allowing water companies to charge customers more than necessary, leading to huge windfall gains.
UK water companies include Pennon Group PLC, which owns South West Water, SSE PLC, which owns SSE Water, Dee Valley Group PLC and larger firms United Utilities PLC and Severn Trent PLC.
By Joshua Warner; [email protected]; @JoshAlliance
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