Energy companies' price increases - have they been telling us porkies?
Everyone is more than aware of some of the gasping price hikes concerning our beloved energy companies, with rises in advance of 10% across the board. The Big Six have been throwing their hands up and saying that this isn't their fault and they've had to do it because of increases in wholesale prices.
However, Ofgem have been collating their own figures and it seems that rises in wholesale prices only went up by 1.7% over the last year. If that's right, prices should've gone from £600 to £610.
In addition to that, Ofgem reckon that energy companies’ average net profit margin has more that doubled.
Representatives from each of these woeful companies are going to face MPs in Westminster this week for a grilling (if the country can still afford to grill things). Energy minister, Greg Barker, is going to throw down the gauntlet to the energy companies to see if they'll return the millions customers have spent thanks to overpaid bills through direct debits. If not, fines could be issued.
He said: "With more hardworking people switching to direct debit to get the best deal on their energy bills, it is vital that they aren't being unknowingly ripped off. The better energy companies will now automatically refund your cash if you build up more money than required to meet your normal bill or will pay you interest if you are in surplus. However, it looks like some companies aren't doing that."
Someone's taking the piss.