The committee proposed the requirements on “big six” companies after its inquiry into consumer engagement with energy markets found a lack of transparency over where customer money goes.
Committee chair Tim Yeo MP said: “Even before the recent reports of wholesale price-fixing, we were extremely concerned about the lack of transparency around wholesale prices and suppliers’ trading arrangements.”
“These allegations have reinforced the need for far more transparency. We are sufficiently concerned about this whole issue of profits and pricing to want to revisit it in more detail in the near future.”
Ofgem should “get its act together” to make firms be clearer about the link between wholesale prices and supply prices, Yeo went on.
And the committee criticised the regulator for being “hesitant” about investigating potentially anti-competitive behaviour.
In its report, the committee accused prime minister David Cameron of causing confusion with his “surprise announcement” on energy tariff simplification. It is not clear whether the government’s proposals on tariffs make Ofgem’s retail market reforms (RMR) redundant, the committee said.
The MPs were not convinced that the regulator’s RMR proposals would succeed in making it easy for consumers to compare tariffs. Ofgem should be prepared to amend the system after 12 months if there is no evidence it is working, they said.