Monday, 2 December 2013

The truth behind excess energy bills

A lot has been said recently that the green levies are crippling the energy companies, the truth is that profiteering by the energy cartels has been excessive and needs to be controlled.

The big six energy suppliers have been accused of "cold-blooded profiteering" after official figures showed they had more than doubled their retail profit margins over the last 18 months and were now earning an average of £95 profit per household on dual-fuel bills. The industry regulator Ofgem, which produced the estimates, said profits per household would reach £100 over the next 12 months.

Other new figures obtained from British Gas, EDF and the four other suppliers showed their profit margin from power generation, a separate part of the business averaged more than 24% in 2011. They are believed to have risen since.

This cold-blooded profiteering has to stop, but piecemeal market reforms will not go far enough, especially given the threat of a dash for gas that will send bills through the roof. It is quite clear now that the Prime Minister David Cameron has realised that a problem exists as they have started a panic in the civil service to find an answer before the next election of May 2015.

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