Fall in wholesale energy costs creates call for price cuts
13/04/2016
UK gas and electricity wholesale prices have dropped to their lowest level in almost a decade which has sparked calls for suppliers to cut bills by 10%.
Data from ICIS Power Index, which analyses energy markets, found that the prices have averaged at nine-year lows over the first quarter of this year.
The big six energy firms (British Gas, EDF Energy, E.ON UK, npower, Scottish Power, and SSE) have cut gas bills by just over 5% this year, but not electricity charges.
The comparison website, uSwitch told suppliers to reduce the standard tariffs by a further 10% in light of the new figures.
Ann Robinson, a director of uSwitch, said consumers had been short-changed by token gesture price cuts.
She said: "Given record-low wholesale costs, suppliers must do the right thing and reduce standard tariffs by a further 10%."
Amber Rudd, Energy and Climate Change Secretary, wrote to energy firms in the middle of last year asking them to pass on a fall in wholesale costs to consumers.
However, she recently announced price cuts by the ‘Big Six’, which all came into effect last month, are calculated to save customers on standard tariffs just £30 a year.
She said: "I've spoken to bosses at the Big Six to make crystal clear that the Government expects suppliers to pass on cost reductions to the families and businesses paying the bills. The cuts in tariffs by the Big Six are a good start but there's more to do.
"This Government is playing its part - committing to take forward recommendations from the biggest ever investigation into the energy market and pushing ahead with plans so people can switch supplier within 24 hours. This will help keep bills as low as possible."
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
Bankruptcies and company failures set to soar in the UK
It has been revealed that bankruptcy petitions in UK have increased by 7% in the third quarter of 2008 compared with the same period in 2007. It was reported by the Ministry of Justice that 13,653 bankruptcy petitions were passed to courts in England in the third quarter of 2008 alone. Over the same period it has also been confirmed that 3,184 companies received winding-up petitions which went to...
Read MoreChildcare costs prohibit working mums
It has been revealed by The Daycare Trust that on average UK mums are paying in excess of £8000 a year for a full-time nursery place for their child. Despite a number of assurances by the UK government that working mums will be accommodated via various allowances and tax incentives, it would appear that many of these promises have yet to materialise into the real world. Headline after headline su...
Read MoreRecycling will take centre stage for UK households
Slowly but surely UK local authorities are moving towards a much stricter and controversial recycling policy which could see traditional "black bins" taken away. The authorities have announced a 12 week consultation period regarding the introduction of yet more recycling bins forcing households up and down the UK to recycle literally everything which they are about to throw out. But what are the c...
Read MoreSSE announce 4.1% gas price cut
26/01/2015 Gas and electricity company SSE has announced that they will be cutting gas prices in the UK by 4.1%, saving the average household around £28 a year. The energy supplier has become the latest out of the “big six” energy companies to cut gas prices, as a result of falling wholesale gas prices. Additionally, SSE said that they would extend their previous ‘price freeze’ f...
Read MoreBT Ready To Invest £1.5 Billion Into UK Broadband
BT is ready and waiting to invest a substantial £1.5 billion into the next generation broadband service of the UK but is waiting for the go-ahead from OFCOM, the industry regulator. In a show of power, BT has said it will only be able to invest the funds if OFCOM looks favourably upon the company's request to increase wholesale broadband charges in the UK - the amount BT charge other broadband...
Read More