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Warning for energy firms
ENERGY FIRMS were yesterday cautioned by the energy watchdog against using investment plans as “a shameful excuse to overcharge consumers” .
Ofgem’s quarterly price report showed that a slump in energy wholesale prices had pushed up supplier’s margins to their highest in five years. The watchdog said the companies had made an average of £210 for each dual-fuel customer last month.
The regulator added that the margin will widen further if suppliers refuse to cut prices, as wholesale costs are expected to fall by £70 over the next six months.
“At the moment, the effect of companies smoothing prices has been neutral, but if prices stay unchanged, we will see customers losing out,” Ofgem said.