After analysing Labour’s methodology in estimating the £3.8bn figure and carrying out its own research, Cornwall Energy has suggested that the big six’s purchasing strategy may have saved households around £6 per year, or £500m overall, in the past three years.
The independent energy consultancy said that Labour did not take into account a number of charges associated with wholesale energy costs, as well as the hedging strategies used by the big six.
Labour’s assumptions are ‘easy to challenge, and some are just plain wrong’
In stark contrast to Labour’s findings, Cornwall Energy told the Telegraph: “We observed a saving in all three years by the big six in aggregate against the costs they would have incurred by applying the representative purchasing strategy.
“It is hard to avoid the impression that Labour needs to try harder to test its assumptions and assertions before it makes them.
“So far a large number of them have been very easy to challenge, and some are just plain wrong.”
Energy UK and Ofgem disagree with Labour’s findings
Shadow Energy Secretary Caroline Flint last week claimed that new analysis carried out by the Labour party had uncovered that the energy giants had been overcharging consumers to the tune of nearly £4bn, over three years.
The results of this research were questioned by Energy UK, the trade body for the energy sector, which said the study had not taken all factors into account when calculating the final figure.
Energy regulator Ofgem also disagreed with the methodology employed by Labour and said not enough information was publically available to support Labour’s claims.