'Lower wholesale prices should produce cheap energy rates' - 27/08/2009
Energy suppliers in the UK should be offering lower consumer rates that are more closely correlated with current wholesale costs, according to a new report.
Consumer Focus claims that homeowners across the country should have seen a four per cent drop in electricity costs and a ten per cent fall in the price of gas due to decreases in the wholesale market, but costs have not been reduced on this scale.
Instead, households are paying an average of £1,200 a year on energy bills, while energy companies have recorded profits of around £2.2 billion.
Robert Hammond, an energy expert for Consumer Focus, said: "The fact that wholesale prices are at a three-year low adds to the already heavy weight of evidence that greater energy price cuts are needed."
The Energy Retail Association, which represents energy suppliers, said current wholesale costs do not reflect the rate at which energy was originally purchased.
Consumer prices have come down in recent months, but the decreases do not match last year's increases.
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