Consumer group slams energy firms

17/10/2008

Recent falls in wholesale energy costs have not been passed on to the customer, a pressure group has said.

Consumer Focus' new analysis shows that gas and electricity bills have gone up by 51 per cent and 28 per cent respectively since the start of the year.

Energy suppliers cited high market costs of fuel as justification for putting their prices up.

Crude oil, for example, hit an all-time high of $147 per barrel in July.

However, oil prices have retreated 44 per cent since then.

Ed Mayo, chief executive of Consumer Focus, commented: "We want immediate action from energy companies to reduce their prices in line with falling oil prices."

Kevin Still, EuroDebt director, added: "As the prime minister has stated, there needs to be a better way to quickly pass on the benefits of price cuts to the man on the street. The companies responsible are not slow in putting prices up.

"However, with energy costs being so volatile it is probably prudent to work on a household budget that errs towards the higher end of the cost scale, as it is much harder to tighten your belt if you keep taking any reductions."

Consumer Focus was formed this month, following the merger of Energywatch, Postwatch and the National Consumer Council.

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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