Ofgem steps up energy pricing investigation

The regulator Ofgem has brought in the forensic accountants BDO to see if energy firms understated their retail profits to justify higher prices, reports the BBC.

Ofgem began investigating the big six energy suppliers last year, and in March it said it had evidence they had pushed up prices in response to rising costs more quickly than they reduced them when costs fell.

The regulator said it had appointed BDO to gain an independent accountant's view to improve transparency over pricing decisions made by the power companies and give consumers more clarity over how retail prices relate to wholesale energy costs.

BDO will look at trading profits, wholesale prices and how the firms hedge against price fluctuations.

Read more on this story at the BBC.