Suppliers say no cuts to bills, despite increase in profits

mattBusiness Electricity, Business Gas

The big six energy suppliers in Britain have warned customers not to expect price cuts, despite their profits increasing.

The big six have told Ofgem that customers are unlikely to see a cut in their bills in the coming year.

They were responding to a request from Ofgem, the industry regulator, to pass on savings from the drop in price of wholesale energy to their customers.

Ofgem wrote to the chief executives of each of the six firms, Centrica, EDF Energy, RWE Npower, E.ON UK, Iberdrola’s Scottish Power and Scottish and Southern Energy, requesting that they cut bills in light of their increasing profits due to the money saved due to falling wholesale energy prices

Ofgem stated that some of the supplier’s poorer customers, could come into financial difficulties over the winter period. Ofgem lacks the authority to enforce any tariff cuts.

The suppliers stated different reasons for their refusal to lower tariffs, but remained united in their rejection of Ofgem’s proposal. Some of them even stated there are possibilities for further price increases in the coming year.

The main reasons quoted were projections in future wholesale prices not justifying a viable reduction in tariffs for customers, and additional costs that amount to up to 40% of a customers bill, not wholesale energy, always rising.