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Energy companies refuse to pass on cost savings

In a situation which puts the UK government in a difficult position the chief executive of EON UK has suggested that energy companies will not pass on cost savings to their customers in order to protect their profit margins. They cite an expected £100 billion investment into new wind farms and power plants as their reason for retaining much of the cost savings of late and blame the government's environmental targets for the situation. This now means the UK government has either to abandon some of its targets or leave consumers open to excessive pricing to cover the current green policy.

This is a very difficult situation because if the energy companies are pushed too hard they will cut back on their future investment and if they are not brought back into line then UK consumers will retaliate against the government. The price of oil has fallen from $150 a barrel earlier this year to $40 a barrel yet energy prices have gone up and up with no falls announced over the last six months.

This is the first statement the energy companies have made on the ever-increasing cost of gas and electric in the UK and we await a response from the government in due course.

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