Credit, Collections & Insolvency News
Responding to the Energy and Climate Information Unit’s report on the profits of electricity distribution network companies, Citizen Advice has said Energy network companies “making billions in excess profits at the expense of consumers”.
Gillian Guy, chief executive of Citizens Advice said “Electricity distribution companies are making billions more than expected by Ofgem at the expense of consumers, driving up bills at a time when many people are struggling to make ends meet. This issue is not limited to electricity distribution companies. Our research shows that across the energy networks market, companies are raking in £7.5bn in unjustified profits.
“Energy network companies should return this money to consumers, as some companies have started to do. If they don’t return the money, the government should step in to make sure customers receive a rebate.”
Guy said: “It’s heartening that more people are engaging with the energy market, but too many loyal customers still are being ripped off simply because they don’t switch. Our research shows that it is often pensioners and people on low incomes who are least likely to switch. This means that it’s the consumers who can least afford it who end up stuck on expensive default tariffs.”
“The energy market needs to work for all customers, so it’s good news that the government is looking at legislation to cap energy bills. In the meantime, energy companies should reward loyal customers by making every effort to move them off poor value default tariffs and onto cheaper deals.”
