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| Energy companies face finance scrutiny | Energy companies face finance scrutiny |
| (about 1 hour later) | |
| The "big six" energy suppliers are to face further scrutiny of their finances by energy regulator Ofgem. | The "big six" energy suppliers are to face further scrutiny of their finances by energy regulator Ofgem. |
| The regulator has outlined measures to improve the transparency of the firms' accounts and make it easier for new suppliers to enter the market. | |
| The big six are also being warned to trade fairly with independent suppliers, or face financial penalties. | The big six are also being warned to trade fairly with independent suppliers, or face financial penalties. |
| The firms, such as Eon and British Gas, will have to publish wholesale power prices two years in advance. | |
| This will make it easier for small companies to buy energy and then re-sell it to domestic and industrial customers. | |
| Andrew Wright, chief executive of Ofgem, said that having changed the rules so consumers can find the best deals, the regulator now wanted to break down barriers to competition for new suppliers. | |
| "These reforms give independent suppliers, generators and new entrants to the market, both the visibility of prices and opportunities to trade they need to compete with the largest energy suppliers," he said. | |
| "Almost two million customers are with independent suppliers, and we expect these reforms to help these suppliers and any new entrants to grow." | |
| The new rules follow criticism from MPs last year that Ofgem had failed to make transparent the finances of the dominant big six suppliers. | |
| It is reviewing the terms under which the firms generate power and sell it to their supply arms. | It is reviewing the terms under which the firms generate power and sell it to their supply arms. |
| The companies will also have to provide more details of their trading operations and have full audits of the accounts they provide to the regulator. | The companies will also have to provide more details of their trading operations and have full audits of the accounts they provide to the regulator. |
| "We also want to ensure that information on revenues, costs and profits of the largest energy suppliers is as clear as possible for consumers," said Mr Wright. | |
| "Now we are taking further steps to ensure that it is published more quickly, and that it gives a robust, useful and accessible picture of company profits. | |
| "Both of these reforms will help ensure competition bears down as effectively as possible on prices." |