Energy firms ‘not distorting’ profits

There is no evidence energy suppliers are “distorting” their profits, says the representative group for the Big Six energy suppliers, Energy UK. It is welcoming industry regulator Ofgem’s latest report […]

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By Vicky Ellis

There is no evidence energy suppliers are “distorting” their profits, says the representative group for the Big Six energy suppliers, Energy UK. It is welcoming industry regulator Ofgem’s latest report on how energy firms publish their accounts.

Ofgem’s latest report recommends energy firms use a standard method for publishing their profits. It is based on research by independent accountants BDO and found suppliers’ financial information to be “fair and appropriate”.

Christine McGourty, director of Energy UK said: “It is welcome news for consumers that an independent forensic examination of energy company accounts has found them to be fair and appropriate.

“These findings should mark a turning point in the work underway to rebuild trust in the sector, providing reassurance to consumers that accounting information is appropriate, with no evidence of distortions of company profitability.”

Suppliers were also relieved to be given the clean bill of health and jumped to welcome the findings.

EDF Energy said in a statement: “We recognise that providing clear, timely and relevant financial information is vital to building public trust. We are committed to being open and transparent and support steps which help make the market simpler, clearer and easier to understand for customers.”