22 Oct '15
Energy firms defiant on energy costs
Energy suppliers have remained defiant in the face of criticism that they are failing to pass on falling wholesale gas and electricity costs to UK households.
The big power companies have come under mounting pressure from consumer groups in recent days to slash tariffs after their input costs fell to a five-year low. But Scottish Power, E.ON and SSE have rejected charges of profiteering, saying that they regularly review the costs that make up their bills.
Although there was a round of gas price cuts between January and April, British Gas is the only one of the Big Six to reduce tariffs since then, with a 5 per cent gas reduction in August - and no major energy supplier has cut electricity.
Wholesale energy costs are at their lowest for five years, but Britain's biggest energy suppliers are still dragging their heels when it comes to reducing people's bills, new findings from uSwitch suggest.
"Which?" is the latest voice in the chorus calling for bill reductions from all energy firms. Richard Lloyd, executive director of the consumer group, said: 'Wholesale costs have been low for some time leaving energy suppliers with no excuses for not cutting our bills. Suppliers must now do the right thing and pass on falling costs to customers.'
Ann Robinson, director of consumer policy at website uSwitch.com, said it is 'astounding' that major suppliers have been 'dragging their heels' on pre-winter price cuts.
Four out of the 'Big Six' suppliers snubbed a June letter from Energy Secretary Amber Rudd demanding they pass on a 20 per cent reduction in gas and electricity costs.
Ms Robinson said, 'Single digit reductions fall well short of the double-digit drop in wholesale energy prices. With the global oil surplus expected to continue into 2016, suppliers have no excuses left for refusing to pass on double-digit bill reductions to hard-pressed consumers.
