Energy giants are raking it in

Despite the recent price cuts in gas and electricity prices from the UK's leading suppliers, these companies are still raking in the profits, charging consumers enough money on energy to see profits go through the roof. The leading suppliers have cut the price of electricity and gas this year following a fall in the cost of wholesale energy – British Gas have even cut the prices of energy twice since March. However, campaigners state that this is not good enough, and that suppliers should stop making so much profit out of consumers that are having to pay a lot of money for the privilege of using gas and electricity.

Powergen, Npower, and EDF have all been targeted by consumer groups over recent weeks for taking in huge profits as a result of the prices that they are charging for gas and electricity. And Scottish and Southern Energy have just announced that profits have soared by 45 percent, taking pre-tax profits to well over one billion pounds and seeing a rise of eighteen percent in share prices. Yet at the same time many people are still unable to afford to use the energy that they need, with many still suffering from the effects of fuel poverty.

One spokesperson from a price comparison website was outraged, stating: '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?'' Ofgem, the energy regulator has been blamed by many for failing to apply regulations that would make the energy market more competitive.

The Chief Executive of Energy Watch stated: '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%.'