Energy Price hikes are being questioned by Ofgem watchdog
Ofgem questions energy price hikes
Mon, 28 Oct 2013 17:03:22 GMT
Energy regulator Ofgem has put Britain’s energy giants’ price hike claims under question after official figures suggest wholesale prices increased by only 1.7 percent over the last year.
Britain’s largest energy providers previously blamed their price rise announcements of up to 11.1 percent on increasing wholesale costs while new figures by Ofgem suggested that wholesale prices rose by only 1.7 percent.
The analysis by the industry watchdog indicated that the element of the average energy bill due to wholesale prices would only have gone up from £600 to £610.
The data also revealed that average net profit margins of the energy suppliers have more than doubled over the past year, rising to £95 from £45.
Earlier last week, British energy giant, RWE Npower said gas and electricity prices will rise by 11.1 and 9.3 percent respectively from December 1.
Energy firm SSE also announced that it would be hiking electricity and gas prices by 8.2 percent next month. The company said its average annual dual fuel energy bill would increase by £106 to £1,380 a year.
British Gas also followed SSE’s price rise with the announcement of a 9.2 percent increase in its dual-fuel bill price from November 23.
According to reports, representatives of Britain’s major energy companies will face MPs’ questions over the recent price rises on Tuesday, October 29.