Energy companies are making higher profits while increasing bills to consumers. That’s the conclusion that has been drawn by industry regulator Ofgem who is continuing an inquiry into the profits and pricing of the so-called ‘big six’ energy providers.
After two recent price increases, net margins at the energy giants have now increased by 49 per cent to make up £97 per year of the average customer bill.
Ofgem investigation continues as profits rise
Ofgem’s chief executive, Alistair Buchanan, recently addressed the Energy and Climate Change Select Committee about the rising profits. He said: “We need to make sure that energy companies are not abusing their position.
“I think the consumer has become slightly jaded and cynical perhaps because of some of the behaviour we have seen from the companies.”
All but one of the six major energy companies has recently increased their gas and electric prices. November saw dual fuel bill rises from both Scottish Power and SSE; December brought an increase from British Gas and this month, Npower and Eon have both lifted prices. Only EDF has promised a price freeze until March.
Vital that consumers compare energy prices
About 24.6 million consumers have seen their bills increase over the last two months, and so it is increasingly important that you regularly compare gas and electric prices to make sure you get the best deal.
The best way to compare energy prices is to head online and use a specialist website to compare gas and electric tariffs from a range of providers.
Although Ofgem has said “If we find evidence that the market is failing consumers, we won’t hesitate to act”, you can take matters into your own hands and save money on your gas and electric bills today.