Hard-pressed consumers across the UK will be outraged to discover that, according to a report conducted by Ofgem, energy suppliers have trebled profit margins to £120 per customer in only three months.
Prior to recent price rises by all of the Big Six suppliers, Ofgem had predicted that energy firms would make a “net margin” of £40 per customer. However, with price rises of up to 11% implemented in the past few months the figure has been revised upward. Consumer groups and politicians have expressed dismay that profit margins have risen so steeply at a time when more households are in danger of entering fuel poverty due to steadily rising bills.
Director of price comparison site Energyhelpline.com, Mark Todd, commented, “What we are seeing here is the impact of the energy price rises that occurred in the autumn. Bills went up by around £100 and now company profits are up by £80 per year per customer. Energy prices and profits just keep rising and rising. In fact bills have more than doubled over the last 10 years. Many consumers calling our switching line tell us that, in the current market. the companies are the big winners and they feel like the big losers. ”
“But consumers can be winners too. If you compare and switch to your cheapest deal companies are likely to make only a few pounds profit from you over the next 3 years rather than £360. As there are good margins in the market, companies desperately want to attract new customers so that means there are great offers to be had.”
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