British Gas’ profits fuel need for clarity on energy prices

In response to Centrica's profits announcement, Mike O'Connor CBE, Chief Executive of Consumer Focus, said: ‘We need successful energy companies but consumers may look at today's profits and at recent prices rises and question how one justifies the other.

‘The issue is not about one company or one year's profit or loss but it is about whether the energy market is working properly and Ofgem's review must try  to answer this question once and for all.  If the regulator identifies systemic weaknesses in the energy market then it should seriously consider whether a Competition Commission investigation is needed.

‘British Gas is the only major UK energy supplier that breaks down its results in any great detail. As such it acts as a lightning rod for the industry. There is a compelling case for much more transparency across the market."

Consumer Focus is urging suppliers and the regulator to work together to provide greater clarity and transparency on energy pricing, in order for consumers to be able to have more trust in the energy market.  British Gas opens its books more widely on profits from UK residential energy supply than the other Big Six. Consumer Focus wants to see all five other major suppliers break down their figures in a similar manner. The watchdog is also urging Ofgem to require suppliers to produce accounts that credibly break down their profits and to implement new EU legislation to require suppliers to disclose the prices they pay on the wholesale energy market.