Energy watchdog Ofgem is not doing enough to ensure that energy company profits are transparent, MPs say.

The Energy and Climate Change Committee report said the watchdog is being neglectful in its obligation ‘to improve openness’, and that forensic accountants should be brought in.

Sir Robert Smith, on behalf of the committee, said: ‘At a time when many people are struggling with the rising costs of energy, consumers need reassurance that the profits being made by the ‘big six’ are not excessive.’

The big six of E.On, SSE, British Gas, Npower, EDF and Scottish Power have different divisions to deal with the different functions of their businesses: generation, trading and supply.

The committee said that the divisions sometimes bought and sold services and energy from one another, making it difficult to work out how much money was being made overall.

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