Ofgem’s response to Energy UK

Our monthly forward look at cost and pricing trends is making the energy market more transparent for consumers.

Our supply market indicators (SMI) help consumers understand what is likely to happen to the different costs that make up their bill over the next 12 months.

We look at trends in wholesale prices, expected patterns of average household consumption, network costs, and the cost of environmental and social schemes.

Ofgem-logo-credit-OfgemThese major costs that a typical large supplier incurs to deliver energy to an average household appear to be falling, but the prices charged for energy are not. As a result, the estimated margin before tax for a typical large supplier over the next 12 months has risen to £106. We have made this clear that this is not a measure of profit but an indicator showing trends.

Consumers need a clear explanation from suppliers as to why, when costs are falling, they are not seeing cuts in energy prices as we would expect in a competitive market.

Concerns that savings weren’t being passed on to customers when wholesale prices fall was one of the reasons we have proposed a referral of the energy market to the CMA for investigation.


Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed