The research, carried out by the Labour party, found that pre-tax profits for the energy giants grew from £2.158 billion in 2009 to £2.219 billion in 2010; £3.867 billion in 2011; and finally £3.737 billion in 2012.
Total profits since 2010 are estimated at £3.3 billion.
In stark contrast, figures from Ofgem reveal that the average consumer has seen their dual fuel bill rise from £1,105 in 2010 to £1,420.
The big six – British Gas, E.ON, EDF, npower, Scottish Power and SSE – supply close to 98% of all homes in Britain.
‘Rip-off energy bills’
Shadow Energy Secretary Caroline Flint criticized the government’s energy policy to date and referred to the £3.3 billion as the “price tag for David Cameron’s failure to act on rip-off energy bills”.
The Labour MP added: “He’s totally out of touch with millions of people and small businesses who are struggling with soaring energy bills. His failure to reform Britain’s broken energy market is leaving hard-pressed bill-payers massively out of profit.
“With warnings of more price rises this winter, it’s clearer than ever that Britain needs a One Nation Labour government to break the dominance of the energy giants, protect the public from being ripped off and create a tough new energy watchdog with the power to force energy companies to pass on savings to consumers.”
Flint has previously stated that should the Labour party win the upcoming elections, Ofgem is likely to be abolished and replaced with “a tough new watchdog with powers to force energy companies to pass on price cuts and clamp down on abuses by the energy giants”.
‘Disappointing and inaccurate bashing’
The research was published following another report issued by the Labour party which examined the evolution of the cost of living in the UK under the coalition government. The report states that people are on average £1,350 worse off per year, than prior to 2010.
Angela Knight, Chief Executive of Energy UK, the trade association for the energy industry, described the research as a “disappointing and inaccurate bashing of an industry which brings heat and light to 27 million homes and business, pays billions each year to the Exchequer and creates employment for over 600,000 people”.
She added: ‘If a company is to stay in business it has to make a profit. And the more a company has to invest then it has to make more profit to do so”.