Aug 22nd 2011
Ofgem calls in forensic accountants to investigate energy company accounts
The Office of Gas and Electricity Markets (Ofgem) has called in forensic accountants BDO to investigate the company accounts of the Big Six energy suppliers, reported the BBC on Sunday 21 August. The regulator has asked BDO to investigate whether energy firms have underestimated their retail profits to justify higher energy prices. BDO will look at the companies' trading profits, wholesale prices and how the firms go about hedging against price fluctuations. Ofgem has said the BDO report will be used to provide transparency over pricing decisions. In March Ofgem accused the Big Six of rising prices faster than they reduced them when wholesale prices fell, the regulator also undertook the retail market review which attempted to give consumers clarity on how suppliers' costs relate to retail prices.
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