Ofgem investigates profits of Big Six energy firms

22/08/2011

By Dan Smith

The profits of the country's Big Six gas and electricity suppliers are set to be assessed by a team of specialist accountants appointed by energy regulator Ofgem.

According to Ofgem, the ways in which these firms calculate their profits will now be investigated by the group of experts.

British Gas, E.ON Energy, EDF Energy, Scottish Power, nPower and Scottish & Southern Energy will all have their trading profits, wholesale prices and hedging practices looked over by BDO, an organisation which provides forensic accounting services.

Ofgem originally started its energy price investigation back in March.

Five of the UK's major gas and electricity suppliers have taken steps to increase their consumer prices in recent weeks, with wholesale gas costs being blamed for many of the latest rises.

Last week saw British Gas introduce average price rises of 18 per cent and 16 per cent respectively for its gas and electricity supplies.