Are Energy Bills Over Inflated?
There is no doubt that over the last couple of years energy wholesale prices have been very volatile - although they only seem to hit the news when prices rise. While the energy companies argue that they are reducing prices in line with fluctuating wholesale prices, a report today indicates that each and every household in the UK is over paying by on average £200 a year.
The report was produced by uSwitch, the price comparison site, and identified that average energy bills have recently come down from £1,013 a year to around £935. While this has been well received by customers and consumer groups alike, uSwitch have gone further and compared pricing patterns against wholesale energy price movements over the last few years.
In conclusion it seems that the energy companies are yet to pass on an additional £200 of annual savings per household, which would be very well received in the current economic environment.
The energy companies argue that uSwitch have an ulterior motive, i.e. to make headlines, attract business and take commission for transferring customer suppliers. They also argue that uSwitch have taken one snap shot in time, which does not give the overall picture in what has obviously been a difficult energy market of late.
The more the energy companies are seen to be inflating their profits, the more chance of government intervention, something which the energy companies fear most. It will be interesting to see if the energy companies take notice of the growing public alarm at their pricing tactics, or is government intervention inevitable?
Why not check out your own energy supply situation at uSwitch.
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