Ofgem slams Big Six after wholesale energy prices drop almost 40% but bills stay the same

Energy regulator Ofgem is demanding to know why the UK’s largest energy companies have failed to pass on huge wholesale price cuts to customers, which have fallen to their lowest levels since 2010.

Ofgem says that the wholesale price of gas is 38% lower than this time last year, and electricity is 23% cheaper.

None of the Big Six energy companies are moving to reduce prices and pass the savings on to customers. The regulator said that E.ON, SSE, EDF Energy, Scottish Power, British Gas and npower were risking “undermining public confidence in the energy market”.

Ofgem chief executive Dermot Nolan said: “The big six suppliers tell us that they think the market is competitive, but our research shows that consumer trust is low.

“Therefore if suppliers are going to start rebuilding that relationship they need to take the initiative and explain clearly what impact falling wholesale energy costs will have on their pricing policies.”

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