The pressure on Energy Suppliers to lower prices continues, as Regulator OFGEM claims that energy companies are “overcharging in many cases” with prices failing to fall in line with dropping wholesale costs.
This falls on the back of a bad week for for energy suppliers, with the issue being addressed in the House of Commons. During Prime Minister question time, David Cameron was forced to admit that “energy prices were not falling as fast as we would like” after it emerged that wholesale gas prices have fallen 30 per cent in the past year, with electricity down nearly a quarter.
Those on variable tariffs are the worst effected, with little seeing the impact of falling wholesale prices being reflected in their energy costs. Where we should be seeing bigger cuts in prices, the reality is customers have only seen a 3% fall in their prices over the last year.
Richard Lloyd, Which? Chief executive, 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.‘
Temperatures have plummeted this week and a survey on Wednesday found that three in five elderly people will ration their heating this winter amid fears over high energy bills. This is not an acceptable solution and customers are being urged to switch energy suppliers and benefit from a cheaper, fixed rate deal.
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