Amber Rudd, the new Energy and Climate Secretary, has contacted Britain’s ‘big six’ energy suppliers regarding the global fall in energy prices, which she believes are being used to boost their profit margins, instead of helping out the public who are struggling to cover their energy bills.
According to industry regulator Ofgem, energy companies could potentially make £118 off the average UK family as their wholesale costs have dropped by around £80 this year.
The big six – EDF, E:On, British Gas, SSE, Scottish Power and Npower – originally stalled on a drop in prices by using Labour’s potential price freeze as an excuse.
Since Ed Milliband’s resignation as Labour’s leader, Ms Rudd has urged the ‘big six’ to lower their prices.
Ms Rudd said: “Now that threat is no longer there, I intend to keep up the pressure on them to act.”
“My focus is to get the best deal for consumers and the department is working hard to keep energy bills as low as possible.”
Last week SSE, the UK’s second biggest energy supplier, achieved a massive 40 per cent increase in retail profits – reaching £456.8million. This is despite losing approximately 500,000 customers over the past calendar year.
SSE also has released the information that their 8.5 million customers currently use around 13 per cent less energy than they did five years ago.
A spokesperson from the energy industry’s trade association Energy UK, said: “Our members will be replying to the Secretary of State in due course and the industry as a whole is keen to work constructively with the new Government to ensure energy security at a price everyone can afford.”