The UK’s “big six” energy companies have been accused of ripping off their customers to the tune of £3billion.
Rising wholesale gas costs added £4.3billion to household power bills in 2008, but just £1.2billion has been wiped back off bills since those costs plummeted – leaving a “£3.1billion hole in consumers’ pockets”, according to campaigners.
Figures obtained by the Press and Journal show that wholesale costs – the price energy companies pay for gas – have almost halved from 51p per unit in January 2008 to just 30p.
But over that same period, the average energy bill for consumers has risen from £912 to £1,191.
The companies – Scottish and Southern Energy, Scottish Power, British Gas, EDF Energy, E.ON UK and npower – were accused last night of forcing people into fuel poverty.
The body representing them, however, insisted UK consumers were getting some of the best deals in Europe.
When bills for north and north-east customers rose by an average £381 in 2008, energy companies cited high wholesale gas costs as the reason. According to energy specialist Platts, wholesale costs did rise from 51.7p per unit in January 2008 to 83.8p in October that year.
However, by January 2009, those costs had returned to 56p per unit, but the impact of the rises months earlier left the average consumer with a £1,293 annual bill.
This week’s wholesale price per unit is 30p – yet average bills remain at £1,191, despite the recent round of price cuts.
Despite blaming wholesales costs as prices went up, the companies now say that energy being used today was bought when prices were high.
Last night, the SNP’s energy spokesman at Westminster, Mike Weir MP, said Scots were being forced needlessly into fuel poverty because of the “energy rip-off”.
He said: “Thousands of families have been pushed into the depths of fuel poverty by soaring bills – an absolute scandal in an energy-rich country.
“The small reductions this year are clearly not enough to be a solid solution and won’t be much comfort to those struggling to cope with the crippling increase in prices.
“The UK Government has to do more to stop this energy rip-off instead of tinkering around the edges of fuel poverty.”
Consumer Focus Scotland director Marieke Dwarshuis said: “These figures highlight once again that consumers continue to get a raw deal from energy suppliers. Wholesale energy prices have been falling since 2008, yet suppliers have waited until the spring, when we obviously use our heating less, to pass on meagre price cuts.”
Ann Robinson, of price comparison website uSwitch.com, said consumers were being left “with a £3.1billion hole in their pockets”, despite the price cuts.
“This £48 dip in energy prices will seem like a drop in the ocean to cash-strapped consumers, especially as most of the cuts this year came too late to help people with their winter bills,” she said.
“Households are still struggling to get to grips with the impact of 2008’s 42%, or £381, price hike. When this is coupled with the effect of a particularly hard winter, you can see why some may be left feeling let down.”
However Peter Jenkins, of Energy UK, which represents the leading gas and electricity companies, hit back – insisting that consumers in the UK got a good deal.
He said: “Customers in Britain pay among the cheapest prices for gas and electricity in Europe and we encourage people to shop around for the best energy deals. Further savings can still be made by switching supplier or even changing your method of payment.
“Most customers will be benefiting from price cuts made last year and the reduced gas prices recently announced by the energy companies. Much of the energy we are using now was bought by the energy companies up to three years ago, when wholesale prices were at a record high.
“The cost of the energy itself only makes up around half the cost of a household bill. The rest of the bill pays for transmission and distribution charges, as well as important social and environmental programmes.”