Energy firms making £105 profit per customer

Ofgem has revealed that energy firms are now making £105 profit per customer, over £30 more than they were back in November. This news comes amidst continued frustration at the refusal of the main energy companies to reduce their bills despite the drop in wholesale prices.

Customers have seen little benefit from the fall in wholesale prices, and the news that the profit margins of the main power companies are at a five-year high is not going to do anything to help matters.

The figure of £105 is the profit that is being made from the average dual-fuel customer, according to Ofgem. This represents a rise of 40% over the last three months and is unacceptable for many.

Ed Miliband, the climate change secretary, said the report shows that “energy companies need to cut their prices”. He commended British Gas for recently cutting its bills by 7%, but called on all suppliers to pass on the benefits of the lower wholesale prices to their customers.

The energy providers have hit back at the claims. They have funded their own report that concluded they are making less than £31 profit a year on each customer, much lower than the Ofgem figure.

The news has not been helped by the fact that British Gas just revealed record profits for the year, seeing a 58% rise in profits to £595 million. This is sure to anger many customers, and we will have to wait to see whether the energy companies will take any notice now and start to lower their bills further.

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