Menu
07/12/2009
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.
Alistair Buchanan, Chief Executive of Ofgem, said a new investigation into retail prices will be launched in the New Year and Ofgem "will not shy away from proposing radical reform to protect the interests of consumers."
Ofgem also told customers that they can save around £200 a year by switching suppliers and that's down to new players in the industry providing competition.
According to regulator at the moment firms are still recovering from three or four years of losses.
However it added that profit margins in dual fuel bills are at a five year high and they may rise further.
So far, the cost to the customer has been broadly neutral but if wholesale gas prices continue to fall as predicted, then companies will need to reflect that in their bills.
But the energy firms seem unlikely to cut their prices.
Today they stepped up the PR offensive, publishing their own analysis which concluded that "energy suppliers are making little or no profit from providing energy to people at home."
"The reality is that companies may be making some modest profit this year after around 4 years of making either none at all, or a loss," said Energy UK - a new communications unit representing the leading gas and electricity suppliers.
The statement added that energy itself only accounts for about half of customer bills - with the rest including things like the cost of renewable energy, as well as the cost of getting the energy from its source into homes.
(LB/BMcc)
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.
Alistair Buchanan, Chief Executive of Ofgem, said a new investigation into retail prices will be launched in the New Year and Ofgem "will not shy away from proposing radical reform to protect the interests of consumers."
Ofgem also told customers that they can save around £200 a year by switching suppliers and that's down to new players in the industry providing competition.
According to regulator at the moment firms are still recovering from three or four years of losses.
However it added that profit margins in dual fuel bills are at a five year high and they may rise further.
So far, the cost to the customer has been broadly neutral but if wholesale gas prices continue to fall as predicted, then companies will need to reflect that in their bills.
But the energy firms seem unlikely to cut their prices.
Today they stepped up the PR offensive, publishing their own analysis which concluded that "energy suppliers are making little or no profit from providing energy to people at home."
"The reality is that companies may be making some modest profit this year after around 4 years of making either none at all, or a loss," said Energy UK - a new communications unit representing the leading gas and electricity suppliers.
The statement added that energy itself only accounts for about half of customer bills - with the rest including things like the cost of renewable energy, as well as the cost of getting the energy from its source into homes.
(LB/BMcc)
Related UK National News Stories
Click here for the latest headlines.
24 September 2008
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
31 July 2008
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.
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.
11 January 2012
EDF Energy Reduce Gas Prices By 5%
EDF Energy has announced it will cut its gas prices by 5% – becoming the first major supplier in 2012 to announce it will pass on falling wholesale prices to its customers. The company was the last of the major suppliers to raise its energy prices in the autumn.
EDF Energy Reduce Gas Prices By 5%
EDF Energy has announced it will cut its gas prices by 5% – becoming the first major supplier in 2012 to announce it will pass on falling wholesale prices to its customers. The company was the last of the major suppliers to raise its energy prices in the autumn.
09 September 2005
Gas and electricity prices to rise by over 14%
British Gas prices are set to rise by 14.2% for residential customers later in September. The company blamed the increase on soaring oil and gas prices. The rise follows on recent similar price hikes by Powergen and EDF Energy. The company said that the 14.
Gas and electricity prices to rise by over 14%
British Gas prices are set to rise by 14.2% for residential customers later in September. The company blamed the increase on soaring oil and gas prices. The rise follows on recent similar price hikes by Powergen and EDF Energy. The company said that the 14.
27 September 2005
Energy watchdog warns on price rises
Rising energy prices are posing a “serious threat” to British businesses, the energy watchdog has announced. Energywatch is to hold a meeting with business leaders and Energy Minister Malcolm Wicks during the Labour party conference in Brighton on Tuesday in order to discuss the effect that rising energy bills are having on the UK economy.
Energy watchdog warns on price rises
Rising energy prices are posing a “serious threat” to British businesses, the energy watchdog has announced. Energywatch is to hold a meeting with business leaders and Energy Minister Malcolm Wicks during the Labour party conference in Brighton on Tuesday in order to discuss the effect that rising energy bills are having on the UK economy.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
