Ofgem: Energy firms make £125 profit per customer
14 October 2011 15:55:27
 |
| Ofgem says energy firms' profits have risen dramatically. |
This is significantly higher than the £15 profit margin reported in June, the regulator said.
Figures show that the average dual fuel bill is now £1,345 a year, after all of the UK's main gas and electric suppliers introduced recent price rises.
Alistair Buchanan, chief executive of Ofgem, said that consumers need "complete confidence that this price is set by companies competing in a fully competitive market".
"At the moment that is not the case," he added.
To address the issue, the regulator has proposed radical reforms which it believes will lead to simpler tariffs for those who compare gas and electric deals, as well as clearer bills and annual statements.
Mark Todd, director of independent price comparison website Energyhelpline.com, said customers would be "stunned" by Ofgem's figures.
"I can't stress enough how vital it is for people to seriously review their energy contracts and switch to another supplier or tariff," he advised.
However, energy companies have dismissed Ofgem's figures, insisting that they are inaccurate and do not reflect their actual profit margins.
British Gas' managing director, Phil Bentley, described the report as "misleading" and revealed: "Our own audited accounts show that, for the first six months of this year, our margins per dual fuel household were £24 after tax. In 2011, profits will be lower than 2010."
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