Energy regulator Ofgem has warned supply companies that they would ‘go after’ any who failed to pass on lower wholesale gas prices to their customers.

Wholesale prices have recently dropped around 20% from their high point, and as new supplies come onstream the regulator says it is optimistic that further cuts will be in the offing.

While current high bills reflect the costs paid by the energy companies in securing supplies for the winter, prices for customers should start falling within the next year as new supply deals are made.

Ofgem said that questions would be asked of companies if they were found to be ‘keeping jam on their fingers’, and reminded them that the regulator has the power to impose a fine of 10% of global turnover if they were found to be ‘behaving badly’ in the marketplace.

Follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.