The energy regulator has warned gas suppliers not to fail to pass on a recent drop in wholesale prices to consumers. “As prices are falling and we have this uncomfortable lag between the wholesale price and the retail price (we are warning companies) if we start to feel through 2007 that you are wanting to keep some of the jam on your fingers, then we have very stringent powers under the Competition Act,” Ofgem Chief Executive Alistair Buchanan was quoted as saying in an interview published on Sunday. Gas prices have fallen in recent months on the back of rising supply via new import pipelines. “Even if we had the coldest day that we had last year, we arguably would have 20 percent surplus capacity to meet (demand on that day,” Buchanan was quoted saying in the Sunday Telegraph.

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