Gas and electricity Updated:
A report released by Ofgem has revealed that the big six energy firms saw profit margins in the supply of gas and electricity rise by 77% in the last financial year – and that's before the latest spate of price rises hit consumers.
According to the research, supply profit margins reached an average of 4.3% in 2012, up from 2.8% in 2011, which equated to supplier profit per household rising from £30 in 2011 to £53 last year – an increase of £23, or a whopping 77%.
This revelation will only add to the anger consumers are feeling towards energy companies, particularly after all but one of the big six have announced price hikes which will see bills rise even more.
Increase 2012 on 2011
£0.2BN (-5% i.e. DOWN)
£0.35BN (28% UP)
£0.15BN (3% UP)
Sourced: energyhelpline Nov 2013
"… it is a bitter pill for consumers to swallow, particularly when cash-strapped households are having to scrimp and save to pay their energy bills.
"If it were only profits that had risen then UK households would be more understanding. Quite rightly consumers are asking where these profits come from given times are so tough."
Meanwhile Citizens Advice found that suppliers have increased their prices by 37% over the last three years alone, meaning increases are running eight times faster than earnings and only adding to the difficulty a lot of consumers are facing.
If you're struggling with the cost of ever-increasing energy bills, all might not be lost – there's still time to switch supplier before many of the price hikes take effect, so make sure to compare energy tariffs before it's too late
Save up to £320 on your energy for your home
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