Some energy firms have made excessive profits
|
Energy firms have been criticised by Ofgem for offering complex and unfair energy bills
The regulator said that the number of tariffs that are offered has increased from 180 in 2008 to more than 300.
Ofgem launched a review after it was revealed that energy firms were making excessive profits; earlier this year British Gas announced that its profits had risen by 24 per cent in 2010.
During their review Ofgem found evidence that suggested that some energy firms adjusted prices in response to rising costs quicker than they reduced them when costs fell.
Ofgem have also revealed that they are investigating some companies in particular, including British Gas, EDF Energy and Npower, for how they handle customers’ complaints.
EDF Energy, Npower, Scottish Power and Scottish and Southern Energy are also being investigated for possible mis-selling.
Chief executive of Ofgem, Alistair Buchanan, said in a statement, ‘Consumers must have confidence that energy companies are playing fair.’
Ofgem have also revealed that they are forcing the ‘big six’ energy firms to auction off up to a fifth of the electricity that they generate. It is hoped that this will allow space for more competition from new companies.
By Lauren King
| 
Win a pair of coloured contact lenses!
Win two anti-ageing beauty products by Judith Williams!