Profits to double for energy suppliers, says Ofgem
The energy regulator has claimed that the big six energy suppliers are likely to double their retail profits this year
Ofgem has announced that it expects the big six – British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE – to make £106 profit, per dual fuel customer, over the course of the next year.
During the previous 12 months, the energy regulator had predicted that energy suppliers would make £53 profit on average, per dual fuel household.
Ofgem has stated that the figures do not take into account tax or interest.
Energy UK: ‘[Country] needs a healthy energy sector with companies that turn a profit’
Energy UK, the trade association for the energy industry, has defended suppliers and pointed out that the British energy industry is currently dependent on providers for much needed investment.
The trade association said: “The UK needs a healthy energy sector with companies that turn a profit.
“Profitability and investor confidence is vital at a time when the industry needs to attract a lot of investment.”
British Gas is likely to deny Ofgem’s claims of increased profits per household and is expected to announce a fall in retail profits tomorrow.
uSwitch: Suppliers quick to pass on costs, slow to pass on savings
Speaking on the issue, Ann Robinson, Director of Consumer Policy at uSwitch, said: “Ofgem’s forecasts cement the case for the big six energy companies to cut bills for hard-pressed consumers.
“Whilst quick to pass on rising costs, they have yet to pass on savings. Wholesale gas prices are at a four year low, electricity costs have slumped by 23% since 2013, yet the providers still haven’t reduced bills.
“It’s now time for one of the big six to cut prices, and lay down the gauntlet to the others to do the same.
“The best advice for consumers concerned about energy costs is to shop around, as our experience shows that on average most people save £200 a year.”