Energy suppliers profit margins rocket up - no one is surprised

14 October 2011

A lump of gas, found earlier yesterday

The brass neck displayed by the energy suppliers is almost beyond belief these days. There’s a constant stream of negative stories about them but the continue to plough ahead, collectively screwing us, the hapless consumers with our childish ‘dependencies’ on stuff like gas and electricity.

The latest jaw-dropping stat has come from Ofgem, and reveals that the average domestic gas and electricity bill has shot up to £1,345 a year, adding that energy companies make an average profit of £125 per customer per annum, up from only £15 in June. Which, to be blunt, is fucking obscene.

In retaliation, Ofgem have unveiled some reforms, insisting that tariffs are made simpler and bills are made clearer, so that the average punter can have more of an idea as to how much he/she is being screwed by these legalised bandits.

Ofgem CEO Alistair Buchanan said: “When consumers face energy bills at around £1,345 they must have complete confidence that this price is set by companies competing in a fully competitive market. At the moment that is not the case. That is why a radical break with the past is needed. Ofgem's tariff reforms offer the quickest way to create a market where consumers can have confidence that prices are set by effective competition.”

It remains to be seen whether any of this will make any difference. We doubt it.

TOPICS:   Utilities   Motoring   High Street News

4 comments

  • Marky M.
    We are lied to (remember the video of E-On's chairman saying they make no money from domestic customers?) and ripped blind until some people die of cold, and OfFob do worse than nothing. Domestic customers are expected to pay UP FRONT for improvements to infrastructure -- which I stupidly thought was the whole purpose of shareholders -- and then those same customers are milked for ever-ratcheting "productivity" bonuses and shareholder dividends. Was privatisation really so bad after all?
  • PlatinumPlatypus
    If the energy suppliers have artificially inflated prices as many believe, then why doesn't a new player come into the market with lower prices?
  • oliverreed
    @PlatinumPlatypus I'll wager that there is massive revenue from licensing permission to sell energy (or backhanders etc) which in turn we'll still have to pay for.
  • catweazle
    Quote "In retaliation, Ofgem have unveiled some reforms, insisting that tariffs are made simpler and bills are made clearer, so that the average punter can have more of an idea as to how much he/she is being screwed by these legalised bandits." I bet the energy suppliers are crapping themselves at that one. Ofgem = a dead sheep in sheep's clothing. Why bother even having "regulators " if they can't or won't limit profit margins?

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