Energy secretary calls for probe into profits of 'The Big Six'

Energy Secretary Ed Davey has written to Ofgem to investigate the profits being made by the “Big Six” energy companies.

13:00 10 February 2014

Energy secretary Ed Davey has sent a letter to regulator Ofgem asking them to carry out investigation on the profits that are being made by the ‘Big Six.’ 

 

In his letter, he singled out British Gas. He said that there are evidence that the company have the tendency "to charge one of the highest prices over the past three years, and has been on average the most profitable.” 

 

Davey wrote: "Clearly you will wish to consider whether this is prima facie evidence of an issue in the market and so whether it merits a market investigation reference with the whole gamut of potential remedies that could follow including a break up of any companies found to have monopoly power to the detriment of the consumer."

 

Meanwhile, Which? Executive director, Richard Lloyd, said: "This is a hugely significant intervention by the Secretary of State for Energy and implies that Ed Davey agrees with Which? that the structure of the biggest energy companies is partly to blame for the price hikes that millions of squeezed customers have been struggling with in recent years.

 

"The pressure is now on the regulators to announce next month that they are taking the first steps towards a more radical reform of the energy market, and to give consumers confidence that they are paying a fair price."