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| Energy firms told to trade fairly with smaller rivals | |
| (about 1 hour later) | |
| The "big six" energy firms are being told to trade with small energy suppliers fairly, or face heavy fines. | |
| Regulator Ofgem says its plan will make it easier for new suppliers to enter the market, and will improve the transparency of the firms' accounts. | |
| The firms, such as E.On 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 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. | 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 [the] opportunities to trade, [that] they need to compete with the largest energy suppliers," he said. | "These reforms give independent suppliers, generators and new entrants to the market, both the visibility of prices, and [the] opportunities to trade, [that] 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." | "Almost two million customers are with independent suppliers, and we expect these reforms to help these suppliers and any new entrants to grow." |
| When selling their power in the wholesale market, the companies will have to publish their prices daily, in two one-hour windows, to give independent suppliers the chance to buy power in advance more economically. | |
| Clearer accounting | Clearer accounting |
| The new rules follow criticism from MPs last year that Ofgem had failed consumers by not doing enough to ensure that the finances of the dominant big six suppliers were transparent. | The new rules follow criticism from MPs last year that Ofgem had failed consumers by not doing enough to ensure that the finances of the dominant big six suppliers were transparent. |
| MPs on the Energy and Climate Change Committee (ECCC) said in July that "working out exactly how their profits are made requires forensic accountants". | MPs on the Energy and Climate Change Committee (ECCC) said in July that "working out exactly how their profits are made requires forensic accountants". |
| The regulator is now reviewing the terms under which the firms generate power and sell it to their own supply arms. | |
| Meanwhile the companies will have to provide more details of their trading operations and have full audits of the accounts they provide to the regulator. | Meanwhile the companies will 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. | "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. | "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," he added. | "Both of these reforms will help ensure competition bears down as effectively as possible on prices," he added. |