Energy UK's statement in response to Ofgem's letter to suppliers on wholesale prices
In response to Ofgem's announcement asking suppliers to explain energy prices to customers, Energy UK said:
“Wholesale energy is just one of a number of costs outside of an energy company’s control, which make up a household bill. All energy suppliers aim to hold costs as low as possible for as long as possible. There are now 24 domestic energy retailers in the UK. They buy gas and electricity months and even years in advance to smooth out the swings in the market. When wholesale prices fall it can take time for bills to catch up as the gas and power may have been bought at a higher price some time ago.
“The suppliers also have to take all manner of risks and wider costs into account, including political and regulatory issues. The industry is committed to openness and will be answering the questions on wholesale prices to their customers and to the authorities.
“We would encourage customers concerned about their bill to contact their energy supplier and ensure they are on the cheapest tariff for their circumstances. The industry believes an honest conversation is needed about the way both gas and electricity prices are impacted by changes in the wholesale market. This year, Energy UK has been publishing a regular wholesale electricity market report to ensure existing market information is readily available.”