The Authority for Consumers and Markets raided the three major energy companies on Tuesday, the FD reports. The raids are part of the regulator’s tightened control of the energy rates of Eneco, Essent and Vattenfall due to the price cap.
ACM reported last week that it had launched an investigation at Eneco, Essent and Vattenfall in order to assess whether the tariffs of energy suppliers are not unreasonable after the introduction of the price cap. The regulator has already announced that it will sharply step up its supervision of energy companies to prevent them from enriching themselves with the subsidy for the price cap. Energy companies must substantiate to the cent why they charge a certain price.
Energy companies may continue to make a profit, but not too much. Roughly speaking, a company may calculate the average margin of the past four years. A company that did very well and made a lot of profit can continue to do so – financed by the state. An energy company that was not doing so well may not suddenly book sky-high profits at the expense of the government.
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