Energy suppliers accused of ‘cold-blooded profiteering’

The Fuel Poverty Action group has accused the UK’s ‘big six’ energy suppliers of “cold-blooded profiteering”, as estimates show their profit margins continue to rise despite the squeeze out on households.

To get the best deal on your energy bills, you can compare gas and electricity with Propertywide.

The comments come in response to estimates from industry regulator Ofgem, which outlined that the ‘big six suppliers’ – British Gas, EDF, E.ON, Npower, Scottish Power and SSE – have seen retail profit margins more than double over the past 18 months.

According to the estimates, these suppliers are now earning £95 profit on average per household, a figure that is set to climb to £100 over the next twelve months.

Sam Robertson, a campaigner with Fuel Poverty Action, said: “This cold-blooded profiteering has to stop, but piecemeal market reforms will not go far enough, especially given the threat of a dash for gas that will send bills through the roof.”

Caroline Flint, the shadow energy and climate change secretary, argued that the figures showed the true extent of the pressure energy costs are putting on household budgets.

“Energy companies always claim that when they put up people’s bills they’re only passing on increased costs,” she said.

“What these figures show once and for all is that energy companies have increased their profits on the back of spiralling bills for hard-pressed consumers.”

Ofgem has also recently warned that energy prices are set to soar in the years leading up to 2020, as the UK becomes increasingly reliant on gas imports. This could send energy bills rising by £200 to an average of £1,600 a year.

All of the ‘big six’ suppliers have already hiked energy prices from between October 2012 and January 2013, citing factors such as rising wholesale costs.

To get the best deal on your energy bills, you can compare gas and electricity with Propertywide.

Posted by: Nicola Severn Categories: Finance Tags: , , , Comments Off on Energy suppliers accused of ‘cold-blooded profiteering’

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