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Energy suppliers under increased pressure to lower prices


The end of 2015 saw wholesale gas and energy prices hit a five year low in the UK, which has lead to increased pressure on the UK’s big six energy suppliers to cut their prices.

Research from energy market analyst ICIS has found that due to mild temperatures throughout the winter and lower global commodity prices, the cost of energy on the wholesale market fell to £36.76 per megawatt hour on the Power Index. The UK’s big six energy suppliers are now under increased pressure to cut their prices in line with falling wholesale costs.

British Gas lowered its gas prices by 5% in August, but is the only big six energy supplier to do so.

Energy secretary Amber Rudd has now written to the energy suppliers to challenge their failure to lower prices. In reply, the energy firms have claimed that they are operating in a highly competitive market.

Which? executive director Richard Lloyd said:
"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."

The wholesale price for gas fell by 34% over 2015, while the price for electricity fell by 23%.

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