Energy watchdog Ofgem has demanded an internal audit of the big 6 energy companies following concerns about profiteering, after drops in wholesale gas and electricity prices have not been reflected in household bills.
The annual profits made per customer have shot up in the past 5 years by £40, creating combined earnings of £17bn. This per customer profit is set to rise by a further £62 over the next year, according to Ofgem calculations.
However, the big six have had a drop in annual profits, from £3.5bn in 2012 to £2.8bn in 2013. This has been blamed partly on plant closures.
Who are the big six?
- Scottish Power
Rachel Fletcher, senior partner at Ofgem’s market division, said of their decision to refer the big six to the Competition and Markets Authority (CMA).
“What we are not seeing is any reduction in the standard tariff… yet again that raises the question about whether there is competition in the market.”
We know that when you’re on a tight budget, your monthly bills make a massive difference to your finances. That’s why we offer all our customers a comparison and switching service with our partners Uswitch, to make sure you’re paying the most suitable tariff for your household needs.