Ofgem Examines Energy Price Fixing

The UK's energy watchdog Ofgem is examining claims that Britain's top gas and electricity suppliers are working together to fix prices.

The Times newspaper has learnt that Ofgem has recently written to Britain's Energy Retail Association (ERA) demanding assurances that industry lobby group meetings are not being used to discuss illicit pricing.

However, following a meeting with the Chancellor Alistair Darling last week, Ofgem Chief Executive Alistair Buchanan said the regulator constantly monitors the competitive market and that there is "no evidence of any anti-competitive behaviour".

The meeting between the chancellor and Buchanan was prompted after npower announced price rises on 5 January.

EDF and British Gas have also recently announced price increases.

All three companies blame rising wholesale power and gas prices and increased distribution and transmission costs.

Wholesale gas supply contracts are affected by global crude oil prices, which hit more than US$100 at the start of the year.

By staff writer