Huge profits for energy suppliers
June 19, 2007
The leading energy giants in the UK continue to reap the profits despite cutting the price of gas and electricity consumption.
Although the top energy suppliers in the UK have made significant cuts to the price of gas and electricity usage, they are still managing to rake in the profits by what they are charging consumers. British Gas has cut the cost of its gas and electricity twice since March, and other suppliers also cut the cost of energy usage following a massive reduction in the cost of wholesale energy last year.
Campaigners, however, are not happy, despite the price cuts. Not only did the prices cuts take far too long to take effect following the reduction in the cost of wholesale energy last year, state campaigners, but energy suppliers are continuing to make incredible levels of profit through the amount that they charge consumers for their gas and electricity usage.
Some state that the energy companies are showing concern for consumers on the outside by reducing prices but rubbing their hands greedily in secret whilst sitting on a tidy profit.
Many consumers and campaigners are holding the regulatory body Ofgem responsible for the huge profits that energy companies have been making – and continue to make.
One official from a price comparison website stated: “It is outrageous. How can they say publicly ‘we’re doing our best for customers’ while scoffing to shareholders ‘we’ve done really well out of these price rises?”
An Energywatch spokesperson also added: ‘I am concerned that the regulator has been asleep at the wheel. The recent price cuts have only been a fraction of the rises over the past three years when gas has gone up 95% and electricity by 65%. Some have not even taken effect yet, a year after wholesale prices fell by 50%.’
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