'Laughable' energy report slammed by Consumer Focus

08/12/2009

Two conflicting reports on energy suppliers' profit margins have been released.

Ofgem, the industry regulator, said that the firms were working on margins of £85 per dual fuel customer, up from £15 in February 2009.

However, research from economic consultants NERA suggested that suppliers were actually losing £1 per dual fuel household.

The amount of money the firms are making, following last year's steep bill increases, has become a controversial issue among consumer groups.

One of these organisations, Consumer Focus, reacted to the reports yesterday (December 7th) by pointing out that the NERA data was funded by the suppliers themselves.

Figures from the consumer group also show that gas and electricity prices increased by 51 per cent and 28 per cent respectively in 2008, but have dropped by only eight and six per cent so far this year.

Meanwhile, prices on the wholesale fuel markets, on which suppliers buy their energy, have fallen sharply.

Robert Hammond, energy expert for Consumer Focus, said: "Consumers who have seen only tiny cuts to their energy bills, while wholesale prices have plummeted, will find it laughable that the suppliers say they are making such miniscule profits.

"The big question is how much longer consumers will have to wait to get a fair deal. Suppliers should cut prices now, not wait until winter bills have boosted their profits."

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

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