Energy regulator identified energy companies that offer poor value
Two leading energy suppliers have been named and shamed by an energy regulator for offering poor value for money to consumers and ripping off energy users on gas and electricity prices. EDF Energy and Scottish Power are the two companies that have been identified by the regulatory body Ofgem, and this comes following a range of complaints with regards to how the two companies have failed to pass on the price reductions stemming from cheaper prices on wholesale energy.
Many of the other leading energy suppliers in the UK have slashed the cost of gas and electricity for consumers following a significant reduction in the amount that the companies themselves have had to pay for wholesale energy. British Gas has recently announced a second cut in the space of a few months, and some other energy suppliers are expected to now follow suit. However, for the two companies identified by Ofgem it is quite a different story, and consumers are still waiting to start enjoying the savings that the companies themselves are making due to the cost of wholesale energy.
According to the energy regulator consumers that are currently in dual fuel pricing with the two energy suppliers could save between £122 and £140 per year by switching to a cheaper supplier. Consumers have complained that when wholesale prices rise the energy companies are very quick to implement higher rates for gas and electricity, but when wholesale prices fall the companies drag their feet in passing on the saving to customers.
The Chief Executive of Ofgem stated: 'New switching figures published by Ofgem today confirm that Britain's energy market remains highly competitive. Our research also shows that a big price gap has opened up leaving EDF Energy and Scottish Power customers paying over £100 for remaining loyal. Competition is all about customer power – in a market where over 600,000 customers switched in the first two months of this year any supplier that tries to buck the market by not lowering their prices or failing on service risks an exodus of customers.'
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