The team here at Love Energy Savings were the first to rejoice at the recent fall in energy prices, but should they have fallen faster and further? In our latest feature, we take a look at whether the Big Six energy suppliers have added to the growing feeling of discontent from customers by keeping their rates artificially high.
You can always rely on the fantastic work being done at Which? to shed some light on these issues and they have recently come up trumps once again with research which suggests that the recent and well received drop in electricity and gas prices should have been far more extensive and indeed, applied a lot quicker.
The price cuts, they say, were simply not in line with the wholesale savings many of the UK energy suppliers have been making; which will have come much to the chagrin of the Big Six customer base which has been on the wane for over a year now. Home and business energy customers do not need any more excuses to leave the larger, more recognised gas and electricity brands to use one of the smaller suppliers, especially as their products are fast becoming more cost effective and flexible.
Home Energy Customers Hardest Hit...
From a domestic energy perspective, this reluctance to pass savings onto customers has cost the bill payer around £2.9 billion in the last twelve months, which equates to £145 per standard rate home. Although this gives a good indication of the amount of money being kept by the larger energy companies, the figure has been questioned by many energy chiefs who believe that too many assumptions have been made, particularly around the average bill due to cheaper tariffs being available. Whether this is the case or not, the reality surely still remains that millions of pounds that should be in the pocket of the energy customer; is being enjoyed by the Big Six Energy suppliers.
The consumer group actually went as far as to say that the recent slash in energy prices, in and round the 5% region, could have been as much as 8.8% - 10.3% if they had been in line with the savings they were making as a result of wholesale energy prices coming down so drastically.
Artificial Pricing By Energy Suppliers...
The main question raised as a result of Which?’s research is just how the suppliers have been deciding upon their prices. The recent fall in prices is all well and good, but if these energy companies have been pulling the wool over the eyes of customers for years, should they be ordered to reimburse them? This is something which will no doubt be debated by energy customers and consumer groups over the coming months. You can find out more about Which’s campaign for fairer energy prices here.
Alternatively, to perform and instant, free and no-obligation energy comparison right this second and see how much you could save your home or business, just put your postcode into the box on the right or at the bottom of this article. We have designed our site and comparison engine to make your life easier and save you as much money as possible on your gas and electricity. We compare all the major UK energy suppliers and will take care of all the hard work for your, leaving you to enjoy the more important things in life.