Thread by @Independent

🔴 Exclusive: Energy watchdog Ofgem handed a £420,000 contract to a consultancy firm to advise on a price cap hike - despite its work for Big Six suppliers independent.co.uk/news/cost-livi…

The price cap is increasing by 54% next month – which will send bills soaring, burdening struggling households amid the cost-of-living crisis 📈

Now The Independent can reveal that Ofgem handed Baringa Partners, a management consultancy firm, a nine-month £420,000 contract “specifically to assist in the determination whether any adjustment is required to the cap”

But as well as accepting public money to consult for the industry watchdog, the company – which recorded a £88.89m pre-tax profit in its latest accounts – has also frequently been hired by major energy suppliers that Ofgem is in charge of regulating

Lord Sikka, a Labour peer and accounting professor, told The Independent: “This does look a conflict of interests – Ofgem should have required some declarations before deciding who to grant the contract to”

Baringa denied a conflict of interest, instead saying it was “just sound business practice”

Read the full story: independent.co.uk/news/cost-livi…