Energy firms’ per customer profit rose 77% in 12 months
The big six made a profit of £53 per household, up from £30 last year and without taking into account the latest price rises
The British public’s dissatisfaction with the energy market is set to grow, as a new study from energy regulator Ofgem reveals a 77% rise in the big six’s profit per customer, in the past year.
Ofgem explained the increase as a result of higher energy prices combined with increased demand during last winter’s coldest months.
In 2012, the average profit margin for providing energy to consumers was 4.3%, a figure 1.5% higher than in 2011. During the same time period, total profits for supplying households and businesses rose from £1.25bn in 2011 to 1.6bn in 2012.
Any profit margin ‘when people are dying […] is unacceptable’
Speaking on the latest figures, Clare Welton at the Fuel Poverty Action group, said: “Any profit margin at a time when people are dying because they cannot afford to turn their heating on is unacceptable.”
The Fuel Poverty Action group will today be staging a protest at npower’s London headquarters, to coincide with the publication of the most up-to-date winter mortality figures.
‘People are sick and tired of paying over the odds’
Shadow energy secretary Caroline Flint, said the research was evidence of a need to freeze energy rates: “Labour’s price freeze will save money for 27 million households and 2.4 million businesses and our plans to reset the market will deliver fairer prices in the future.
“People are sick and tired of paying over the odds because David Cameron is too weak to stand up to the energy companies and just stands up for a privileged few.”