Panel ask Ofgem to make energy companies’ more transparent

Panel ask Ofgem to make energy companies’ more transparentA panel of MPs in the UK have asked the energy industry regulator, Ofgem to make sure that energy companies are transparent about the way they earn their profits.

They said that the households in the UK should be able to see the way six largest energy companies make profits. They warned that if the regulator does not ensure transparency, then the government will move to intervene in the matter. The House of Commons Energy Committee has said that the people do not trust the energy companies because of the lack of openness in the market about the way they earn profits. They blamed regulator for not taking steps to restore public trust in the sector in the UK.

Glasgow MP John Robertson asked the regulator to use its authority and make sure that energy companies release details proving that they are clean. Sir Robert Smith, who represents West Aberdeenshire and Kincardine said that the complex nature of energy firms meant that accountants were needed to determine the actual profits for the firms.

The panel also said that the energy bills should be made easier to understand and the prices must be compared with those of other companies.