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Energy firms 'should use profits to halt price rises' - 18/10/2011

Energy suppliers should use some of their profits to help customers get cheap electricity and gas through the winter.

This is according to the Labour Party, which stated that instead of using increased profits this year to boost their bottom line, the Big Six companies could be using the extra money to protect their customers from the "crippling" effects of further price hikes.

"We must put an end to a rigged market which allows the energy firms to rip off families and businesses who desperately need help," the political party said, noting that 80 per cent of people in the UK are paying more than necessary for their gas and electricity needs.

It added that, with household set to face an expected "triple hit" of increases in tariffs, cuts to the winter fuel payment and an extremely cold winter ahead, many families will be seeing a huge squeeze on their finances in the coming months.

Last week, Ofgem claimed energy firms have made an average profit of £125 per dual fuel customer this year, although this was disputed by British Gas, which said its actual profits were £24 per household after tax.

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