Ofgem Declines Energy Probe

Ofgem, the UK energy regulator, announced that is has no concerns about anti-competitive behaviour in the UK.  Earlier this month, Npower increased average gas prices by 17.2% and electricity by 12.7%, and its competitors are expected to follow suit.
Chancellor Alistair Darling called for a meeting with Ofgem to review the reasons behind the price rises and their implications.
Npower is the UK’s fourth-largest energy supplier.  It stated the price rises on soaring wholesale costs.
Independent watchdog Energywatch has called on the UK’s “big six” energy firms - British Gas, Npower, EDF Energy, E.On, Scottish Power and Scottish and Southern Energy - to be brought up before the Competition Commission.
But an Ofgem spokesman explained that the UK had “one of the most competitive energy markets in Europe, with changing market share between the companies, price differences and good levels of switching”.
He went on to say: “We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour.”
Npower, which has four million UK customers, said its wholesale energy prices had gone up by 66% for electricity and 60% for gas since last year.
Analysts say wholesale gas prices are reflecting the record cost of oil, as any increase in the price of crude has a reverberating effect on gas.
Gas is responsible for 40% of electricity production in the UK.

www.ofgem.gov.uk