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Energy suppliers see profit margins jump

New figures from Ofgem show energy suppliers' profit margins jumped in the last quarter.


Ofgem chief executive Alistair Buchanan

Ofgem, the energy regulator, has released new figures showing the total net margin for energy suppliers was £115, up from £40 last year.

The figure, which based on estimates for the next 12 months, provides a snapshot for standard tariff customers.

The news follows a winter of energy price rises that have hit households hard, and the recent announcement of a rise in the cost of water.

The season of price rises was further compounded by Co-operative Energy’s own price hike announcement last week. The supplier had bucked the trend by cutting prices last year.

Speaking at the time of the water price increases, Ann Robinson, director of consumer policy at uSwitch said: “Consumers will now have to find over £100 more a year to meet the cost of these essential utility bills.

“With incomes remaining stagnant, this will be another squeeze on family finances and will no doubt cause sacrifice and hardship for many.”

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