Bill Demands Action on Soaring Energy Prices

Bill recently commented on a new ofgem report, which reveals that energy firm profit margins have risen to £125 per customer per year, from just £15 in June.

He said, “Energy companies should be ashamed of these high profit margins at a time when ordinary customers are reeling from soaring bills. It is doubly ironic for residents of Dunfermline and West Fife, with Scotland’s largest electricity generator, Longannet Power Station, within our midst.
“The energy companies say that they need to push prices up to make investments in the sector, and while that is true to some extent, an increase of more than 700% in profit margins in four months cannot be justified.
“While prices soar, all the UK Government suggest is that customers shop around. But, when we have just seen the big six energy suppliers go through yet another ‘follow my lead’ of rising energy prices over the last few months, how is the average consumer supposed to know what is a good deal without knowing when the next company is going to raise prices? It smells very much like a cosy cartel to me.
“Prices are rising much faster even than the ability of customers to cut costs by reducing consumption.
“If the UK government were serious about the reduction in energy bills they need to look at how prices rise quickly when their wholesale costs in world markets go up, but fall slowly, if at all, when these wholesale costs fall.
“Rising fuel bills also means increased VAT payments for the UK Treasury. This extra cash should be used to tackle fuel poverty.”
He concluded: “With fuel poverty amid energy plenty, the energy market clearly is not working for the consumer and there is now an overwhelming case for investigative action from the UK Government to help customers cope”.

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