Menu
14/10/2011
Energy Firms' Profit Margins Sparked By Price Rises
Energy suppliers have increased their profit margins to £125 per customer a year due to recent price hikes, it has emerged.
Industry regulator Ofgem said that its latest report on prices shows that the average dual fuel bill now stands at £1,345.
Ofgem said the report shows “competition is being stifled by a combination of tariff complexity, poor supplier behaviour and lack of transparency” and radical change is needed.
However, the regulator said that prices are “likely” to fall back next year.
Ofgem’s Chief Executive Alistair Buchanan said: “Ofgem’s tariff reforms offer the quickest way to create a market where consumers can have confidence that prices are set by effective competition. Suppliers have told Ofgem they want to restore the confidence in the industry and now they have the chance to do so.
“With £200 billion of investment needed to overhaul Britain’s energy industry and the pressure this and rising energy prices puts on bills, consumers rightly demand a major improvement in the way suppliers behave towards them.”
Ofgem is proposing to give consumers a much clearer choice than the 400 tariffs currently available. Each supplier will be required to offer just one standard tariff for each payment type. With the standing charge set by Ofgem suppliers will only be able to change the unit price, which means that consumers will be able to compare prices at a glance.
Ofgem is also developing an Energy Label for every tariff which will give consumers all the important information they need to make an accurate comparison.
(CD/GK)
Industry regulator Ofgem said that its latest report on prices shows that the average dual fuel bill now stands at £1,345.
Ofgem said the report shows “competition is being stifled by a combination of tariff complexity, poor supplier behaviour and lack of transparency” and radical change is needed.
However, the regulator said that prices are “likely” to fall back next year.
Ofgem’s Chief Executive Alistair Buchanan said: “Ofgem’s tariff reforms offer the quickest way to create a market where consumers can have confidence that prices are set by effective competition. Suppliers have told Ofgem they want to restore the confidence in the industry and now they have the chance to do so.
“With £200 billion of investment needed to overhaul Britain’s energy industry and the pressure this and rising energy prices puts on bills, consumers rightly demand a major improvement in the way suppliers behave towards them.”
Ofgem is proposing to give consumers a much clearer choice than the 400 tariffs currently available. Each supplier will be required to offer just one standard tariff for each payment type. With the standing charge set by Ofgem suppliers will only be able to change the unit price, which means that consumers will be able to compare prices at a glance.
Ofgem is also developing an Energy Label for every tariff which will give consumers all the important information they need to make an accurate comparison.
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
04 April 2013
Ofgem To Fine SSE £10.5m
Ofgem has announced it will fine energy company SSE as much as £10.5m for misselling. The energy watchdog said it would fine SSE for "numerous breaches of its obligations relating to telephone, in-store and doorstep sales activities".
Ofgem To Fine SSE £10.5m
Ofgem has announced it will fine energy company SSE as much as £10.5m for misselling. The energy watchdog said it would fine SSE for "numerous breaches of its obligations relating to telephone, in-store and doorstep sales activities".
05 August 2011
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
13 August 2007
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
01 September 2005
Fall in house prices reported
House prices fell by 0.2% in August, according to the latest figures from the Nationwide. The building society said that the rate of annual house price growth had fallen to 2.3%; it’s lowest level in nine years.
Fall in house prices reported
House prices fell by 0.2% in August, according to the latest figures from the Nationwide. The building society said that the rate of annual house price growth had fallen to 2.3%; it’s lowest level in nine years.
22 February 2008
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
-
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.
