Consumer groups want energy firms to pass profits back to customers

16/02/2012

Consumer groups are accusing the big six energy firms of using unfair tactics to profit at a time when their sales are actually failing.

This week, EDF Energy, announced that its UK profits for 2011 stood at a whopping £1.6 billion, a rise of 0.2 billion on figures posted a year earlier.

However, the firm which has 5.5 million domestic and business energy customers, actually saw its revenues drop from £7.7 billion to £7.1 billion because people are being more conscious about their use of gas and electricity.

EDF has claimed that the jump up in profits was a direct result of it moving into the nuclear market as well as falling wholesale gas charges.

But Audrey Gallacher of Consumer Focus believes that they are guilty of blatant profiteering and should do more to ensure that customers are given a fairer deal on their energy usage.

"This will leave many customers wondering whether energy prices can, and should, be cut further. Consumers need to know big profit margins are not being made needlessly at their expense," she said.

"The issue is not how much money is made over one year, it’s whether the market is working as a whole, pricing is fair, and if suppliers are providing enough transparency."

Wholesale gas costs dropped by nine per cent recently but EDF have only passed five per cent of this on to its customers – and prior to that they put bills up by an incredible 15.4 per cent.

British Gas are expected to announce their annual figures in the next week and a profit of around £550 million is expected.

Ofgem's Consumer Focus Panel recently called on more transparency to be given to both consumer and business users on how their tariffs are charged.

A study conducted by N Power also found that 44 per cent of customers are currently unhappy with the firm they get their energy from.