Ofgem to announce largest ever energy market probe

An 18-month probe into claims British Gas, SSE, Npower, EDF, Scottish Power and E.ON may be making excess profits and ripping off loyal customers is expected be launched by the Competition and Markets Authority.

“Further evidence would be required to determine whether firms have had the opportunity to earn excess profits,” it said.

The regulator added that suppliers were “consistently setting higher prices for consumers who have not switched”, who are often the most vulnerable, while offering cheaper deals to savvy consumers.

It found evidence of “possible tacit coordination reflected in the timing and size of price announcements”, although it is not a breach of competition law.

It also found “new evidence that prices rise faster when costs rise than they reduce when costs fall”.

Centrica, the owner of British Gas, has warned that an investigation would make it less likely to invest in new power plants.

Neither Ofgem nor the Competition and Markets Authority returned calls for comment.

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