Ofgem warns suppliers over prices

mattUtilities Market Regulation

Industry regulator has again inquired into why suppliers continue to increase energy bills despite falling wholesale energy costs.

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Ofgem has announced concerns that energy suppliers are making too much money from their customers, with reports suggesting that they are making £85 profit per customer.

This is the highest profit level the energy suppliers have made in 5 years, according to Ofgem.

Ofgem have said that prices need to be dropped in the new year, to avoid the customer losing out.

The suppliers argue that the profits being made today are making up for a long period of making no profit at all, or a loss. They also claim that they need such profits as in the next 10 years they are required to spend hundreds of billions of pounds in order to reach the low carbon future britain has committed itself to.

In their report, Ofgem again said that customers can save up to £200 per year simply by switching supplier.