Industry heavyweights are likely to see their market share increase as they establish a “near monopoly” after a number of smaller firms went bust. Profits could rise for the “big six” – British Gas, EDF Energy, E.ON, SSE, Npower and Scottish Power – in spite of the price cap, created to “protect customers from being ripped off”
Consumer expert Scott Dixon said: “The ‘big six’ will charge as much as they can under the circumstances and are in a strong position to dictate future pricing to recoup their losses.”
Ofgem’s chief executive Jonathan Brearley said yesterday that firms’ “legitimate costs have to be passed through” to customers.
A spokeswoman for EDF said: “EDF wants to reassure customers that we are here for them, for the long term.”
EDF has taken over Utility Point, while British Gas is the new supplier for People’s Energy, PFP Energy and MoneyPlus accounts. SSE’s retail customer base was taken over by Ovo.