Energy suppliers 'have failed to pass on savings to customers'

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Energy suppliers 'have failed to pass on savings to customers'

Thu 25th Jun 2009

British energy customers are being overcharged for the energy they consume by up to £1.6 billion as suppliers have failed to pass on any drops in prices since they have occurred, according to a new study.

Carried out by Consumer Focus, the research reveals that gas prices should be at least 7.4 per cent lower than they are at present and electricity should be 3.1 per cent lower.

It also calculates that, in line with current energy prices, companies should reduce their customers' bills by around eight per cent for gas and four per cent for electricity by the end of 2009.

"Companies are pocketing £1.6 billion extra, while millions of households struggle to make ends meet. Energy firms should take immediate action to put things right for their customers," explained Philip Cullum, deputy chief executive of Consumer Focus.

The average British energy bill will hit £4,000 a year within the next ten years if rates continue to rise at the pace they have over the last five years, uSwitch.com calculates.

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