As wholesale energy prices drop, Ofgem asks suppliers to take action

Energy market regulator Ofgem has asked the Big Six energy firms to go public and explain to their customers the reasons behind their decision to keep tariffs at existing levels, despite the recent drop in wholesale gas and electricity prices.

Currently, energy companies pay for gas around 38 per cent less than they did this time last year, Ofgem said, while electricity prices reached their lowest level since April 2010 and are currently around 23 per cent lower than this time last year.

However, despite these major drops, energy companies have refused to cut bills and pass savings on to consumers, which has helped boost their profits to near-record highs. And we’re not talking about some small sums, either, since recent analysis published by price comparison site energyhelpline suggested suppliers could pass on a price reduction of £77 – six per cent – to a typical household bill.

Ann Robinson, director of uSwitch, said: “Consumers are not going to understand why they are not benefiting from lower energy costs — when costs go up they are the first to suffer.

It would be great if one of the Big Six companies could now take the lead and cut prices, laying down the gauntlet to the other energy companies to do the same.”

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