British energy regulator Ofgem has called on the Big Six energy suppliers to explain to customers what impact falling wholesale costs will have on their energy prices.
In recent months, both wholesale gas and electricity prices have been falling significantly in the U.K. In early June 2014, gas prices for next day delivery reached their lowest level since September 2010. Prices of electricity reached their lowest level since April 2010 at the beginning of June. While there are upward pressures on energy costs resulting from government schemes to support environmental objectives as well as energy network renewal, the costs of wholesale power and gas cost dwarf these and make up just under half the total household bill.
Suppliers are yet to reduce their prices for existing customers to reflect the wholesale cost changes.
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