Looks like energy companies have overcharged by £3 BILLION

15 January 2016

energy Everyone hates energy companies, and a bit of research has said that they've collectively overcharged everyone by a whopping £3 billion. The report came from Energyhelpline, and they showed that over the last couple of years, wholesale gas prices have gone down by 51%, and electricity prices have dropped by 33%.

"This could have been passed through as price cuts of around 25% on gas and 11% on electricity for UK households, yet all loyal customers have seen is an average of 5% off gas bills and nothing off electricity bills,” said Mark Todd  from the site.

Energy pricing has been a hot topic over the last few years, with scores of reports and reviews saying that the UK has been overcharged, so this will come of little surprise to many.

However, there was a defence of the energy companies. Lawrence Slade, gaffer at Energy UK, said that energy companies have been bringing prices down, and they continue to do so and that, since January 2014 the cheapest tariffs have fallen by £200-ish: "Wholesale prices make up less than half of the average bill and the majority of the rest falls outside suppliers' control so there will always be a difference between wholesale price falls and what customers actually pay."

Of course, energy companies have overheads and wages to factor in as well, but there's a definite sense that they could be doing more to bring everyone's bills down.

Richard Lloyd from Which!!! says: "It's extremely disappointing millions of us are still paying way over the odds for our energy. Consumers will rightly ask why their bills haven't been cut dramatically when wholesale costs have dropped."

"The Government needs to protect vulnerable customers from being ripped off and make people feel confident about switching supplier."

TOPICS:   Utilities

1 comment

  • Alexis
    "We buy gas 2 or 3 years in advance" Said all the energy companies 2 and 3 years ago.

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment