Energy companies increase profit margins
It has been revealed that energy companies in the UK have increased their profit margins on each customer by £30. This increase in the cost of energy, and the profitability of energy companies, has occurred over the last three months during a time when the UK economy was struggling to pull away from the grip of the recession. These figures from Ofgem also confirm that wholesale energy costs in the UK have fallen but much of the reduction has yet to be passed on to customers.
The energy sector and the UK economy could not be at further ends of the spectrum with one prospering and one struggling but surely this will change in the short term?
Unfortunately unless Ofgem is able to exert more pressure on energy companies in the UK it is unlikely we will see any major shift in energy costs in the short term at least. The UK government has also promised various initiatives to reduce the cost of energy in the UK but so far very few of these moves have come to fruition. If any of the political parties are able to exert pressure in this area in the run to the general election this could be something of a vote winner.
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