Yes, your fuel bills should be lower. Here's why it won't happen.

21 October 2008

We've already mentioned energy companies that are screwing you out of money by not telling you about cheaper tariffs. Of course it doesn't stop there; according to former Energywatch chief executive Allan Asher, gas and electricity bills are still hundreds of pounds higher than the industry can justify.

Asher has told the BBC that annual duel-fuel bills of around £1,200 could be cut by £300 to £400 with tougher regulation and market reforms. So how are suppliers getting away with it? And shouldn't prices be decreasing after recent drops in the wholesale price of fuel? Not bloody likely say the energy companies, as the BBC's Robert Peston explains in his blog.

The excuses reasons given by suppliers include the previously unmentioned threat of all our electricity generators failing, uncertainty over how cold this winter will be and prices for energy still being higher than last year. All of that, plus a lot of financial gambling by energy suppliers that hasn't paid off. Shock.

In other words, regardless of how hard Allan Asher or the Prime Minister huff and puff, we're stuck with rocket-high price for some time to come. And no, the graph has nothing to do with the story, but it's funnier than one of rising energy costs.

[BBC]

TOPICS:   Utilities

1 comment

  • High B.
    [...] check facts and have a tendency to believe anything that sounds “official”. You mean, like British Gas on your fuel bills? You [...]

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