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25/06/2009
Energy Customers Being Overcharged More Than £1.6bn
New research by Consumer Focus shows that energy customers are being overcharged by a combined £1.66 billion this year (£74 per household), as declining wholesale costs have not been fully passed on by suppliers.
Analysis shows that current gas prices should be at least 7.4% cheaper, and electricity bills a minimum of 3.1% lower, if suppliers had fully passed on declining wholesale costs to consumers. The watchdog is calling on suppliers to pass on these savings immediately.
The research also suggests that additional price cuts of up to 8% (£65) for gas and 4% (£17.80) for electricity should be made by the end of the year, if market conditions do not substantially change. This, combined with an immediate cut, would save £157 on current prices by winter, which would make a huge difference to many cash-strapped consumers.
As part of its analysis Consumer Focus applied the five hedging strategies outlined by Ofgem in its probe report last year, to reflect the wholesale price paid by suppliers for their gas and electricity. These estimates on electricity and gas costs are regarded within the energy industry as conservative and the actual gap between wholesale and retail prices could be even higher.
Philip Cullum, Deputy Chief Executive of Consumer Focus, said: "Consumers have feared for months that the big six suppliers might not have passed on the full cuts in wholesale energy prices, but the companies claimed to have acted fairly. Our new research for the first time shows the reality. The companies are pocketing £1.6 billion extra, while millions of households struggle to make ends meet.
"Energy firms should take immediate action to put things right for their customers. A failure to act, and to ensure that people pay a fair price for energy, could have serious consequences for the sector."
(CD/JM)
Analysis shows that current gas prices should be at least 7.4% cheaper, and electricity bills a minimum of 3.1% lower, if suppliers had fully passed on declining wholesale costs to consumers. The watchdog is calling on suppliers to pass on these savings immediately.
The research also suggests that additional price cuts of up to 8% (£65) for gas and 4% (£17.80) for electricity should be made by the end of the year, if market conditions do not substantially change. This, combined with an immediate cut, would save £157 on current prices by winter, which would make a huge difference to many cash-strapped consumers.
As part of its analysis Consumer Focus applied the five hedging strategies outlined by Ofgem in its probe report last year, to reflect the wholesale price paid by suppliers for their gas and electricity. These estimates on electricity and gas costs are regarded within the energy industry as conservative and the actual gap between wholesale and retail prices could be even higher.
Philip Cullum, Deputy Chief Executive of Consumer Focus, said: "Consumers have feared for months that the big six suppliers might not have passed on the full cuts in wholesale energy prices, but the companies claimed to have acted fairly. Our new research for the first time shows the reality. The companies are pocketing £1.6 billion extra, while millions of households struggle to make ends meet.
"Energy firms should take immediate action to put things right for their customers. A failure to act, and to ensure that people pay a fair price for energy, could have serious consequences for the sector."
(CD/JM)
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31 July 2008
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British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
07 December 2009
Gas Suppliers Warned On Bills
A UK energy regulator has warned gas suppliers that prices charged to households must come down if the price of wholesale gas continues to fall. The regulator, Ofgem, said companies must not "use investment as a shameful excuse to overcharge consumers" and bills must come down in the New Year to avoid the customer losing out.
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A UK energy regulator has warned gas suppliers that prices charged to households must come down if the price of wholesale gas continues to fall. The regulator, Ofgem, said companies must not "use investment as a shameful excuse to overcharge consumers" and bills must come down in the New Year to avoid the customer losing out.
12 October 2010
UK Inflation Remains At Current Rate
According to the Office for National Statistics (ONS), UK Consumer Prices Index (CPI) inflation remained unchanged at 3.1% in September. Including a higher proportion of housing costs, the Retail Prices Index (RPI), fell back slightly to 4.6%.
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According to the Office for National Statistics (ONS), UK Consumer Prices Index (CPI) inflation remained unchanged at 3.1% in September. Including a higher proportion of housing costs, the Retail Prices Index (RPI), fell back slightly to 4.6%.
13 November 2012
Investigation Underway Into Allegations Of Gas Price-Fixing
Regulators have launched an investigation into claims that wholesale gas prices have been manipulated. Energy secretary Ed Davey has said he is, "extremely concerned about the allegations". The investigations by the Financial Services Authority (FSA) and Ofgem were launched following claims by a whistle-blower.
Investigation Underway Into Allegations Of Gas Price-Fixing
Regulators have launched an investigation into claims that wholesale gas prices have been manipulated. Energy secretary Ed Davey has said he is, "extremely concerned about the allegations". The investigations by the Financial Services Authority (FSA) and Ofgem were launched following claims by a whistle-blower.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
