Energy suppliers under increased pressure to lower prices
15/01/2015
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%.
Need Financial Advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Scottish tax payers set to take £45 million hit
While there is no good time to lose £45 million of tax payer's money, the news that Scottish local authorities have around £45 million with Icelandic banks is not good news for councils, for the government and for tax payers. As the SNP government continues it relentless crusade to place councils under as much spending pressure as possible - often taking the praise for scheme which are unfunded...
Read MoreBritish Gas to cut 6,000 jobs
30/07/2015 Centrica, who own British Gas, have announced that they will be cutting 6,000 jobs, despite doubling profits in the first six months of this year. Half the jobs lost will be through redundancies, and other jobs will be created in other parts of the company, leaving about 4,000 unemployed overall. This is despite profits from British Gas rising to £528 million, compared to £265m...
Read MoreScottish whiskey sector gets a reprieve
In a rather embarrassing gaffe it has today been revealed that in an attempt to make up the reduced VAT income on alcohol, the government had instigated increased duty across the board. However, somebody at the Treasury seems to have miscalculated the effect on the Scottish whiskey industry as overnight prices were set to increase by up to 29p per bottle.
This embarrassing situation...
Manchester road charge plans revealed
Members of the public in Greater Manchester are being asked their opinion about controversial plans to introduce road pricing to the city.Proposals to launch a £3 billion wave of investment in the city's transport infrastructure include a congestion charge scheme similar to that currently in place in London.Under the plans motorists would be charged £1 or £2 when they pass through intermediate...
Read MoreFood bills up £750 within a year
Rising food prices are adding an extra £750 to the average family's food shopping bill, it has been claimed. According a study conducted by the Office of National Statistics (ONS), wholesale food prices were up 7.4 per cent during 2007. This is the highest rate of increase the ONS began monitoring food prices in 1992 and has pushed the cost of a consumer's average basket up by 12 per cent in a ye...
Read More