Call for UK’s ‘Big Six’ energy suppliers to explain wholesale price impact on energy bills

UK oil and gas industry watchdog Ofgem sent a letter to the UK’s large energy suppliers in June asking them to explain why falling wholesale energy prices have not led to reduced energy bills. Around half of the average British household energy bill is made up of underlying market prices for electricity and gas. Ofgem estimates a typical home will spend £1,346 on power and gas over the next 12 months from May 2014 – a 3.1% year-on-year rise – despite lower wholesale prices and a 15% drop in ‘environmental and social’ costs since January.