Energy companies rake in huge profits (but your bill’s still staying high)

By
Sean Poulter
Last updated at 8:31 AM on 12th November 2009

The heat is on: Energy suppliers are being urged to consider price cuts as wholesale prices drop
Energy bills will not be cut despite a dramatic jump in profits for one of the country’s biggest suppliers, customers were warned yesterday.
Scottish and Southern Energy, which has nine million customers, provoked fury after revealing profits of £410.5million for the last six months - up 36 per cent on the same period last year.
It comes as wholesale energy prices are plummeting, with costs falling by about half since the summer of 2008.
But these are rarely passed on to struggling customers, with most bills down just 4 per cent this year. Major suppliers including British Gas, RWE npower, E.ON, EDF and Scottish Power are also raking in huge profits compared to a year ago.
The Conservatives called for a swift Competition Commission investigation into fears of profiteering as consumer groups demanded price cuts ahead of the winter.
Robert Hammond, energy expert at Consumer Focus, said: ‘Millions of customers struggling to afford their energy bills will find it difficult to understand how energy firms are making such healthy, and in some cases increasing, profits in the recession.
‘There needs to be greater transparency of energy company accounts if consumers are to have confidence that their bills are justified, and are not just lining the pockets of shareholders.

‘We also believe there is generally room for further price cuts which should be made now before winter bills hit consumers’ doormats.’ In many cases the profits will go straight into the coffers of foreign utility giants. RWE npower and E.ON are part of German energy firms, EDF is owned by a French company and Scottish Power has a Spanish parent business.
Tory energy and climate change spokesman Greg Clark said yesterday: ‘For over a year now Conservatives have demanded an immediate-investigation by the Competition Commission into why cuts in wholesale prices are not being passed on to consumers.
‘The Government’s Energy Secretary merely growls occasionally at the energy companies, but he has proved to be a paper tiger and lacks the courage to act on consumers’ behalf. A Conservative government would settle the matter once and for all with a short, sharp investigation.’
Energy consultant David Hunter, from McKinnon & Clarke, said: ‘The failure of the suppliers to pass on the massive reductions in energy prices, which they have been enjoying for nearly a year, is approaching scandal proportions.’
Scottish and Southern Energy, which is the UK’s second largest supplier and cut prices in the spring, blamed predicted increases in wholesale prices and higher costs linked to regulation for its decision to rule out further reductions in the near future.
But it said avoiding an increase before the end of next year ‘remains an important goal’.
This week Energy Secretary Ed Miliband warned that families face further increases in bills to meet the cost of building nuclear power stations and shifting to ‘green’ power generation such as windfarms.

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So its fair to assume that now we have been signed up to the European Superstate that our bills will now fall in line with everyone else in the EU?
I wont hold my breath!
- Tom, London, 12/11/2009 10:30

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When the lights go out in England, - don`t blame us,
When your radiators cold, - don`t blame us,
We have tons, and tons of coal,- but you put us on the dole,
So when the lights go out in England, - don`t blame us.!
Now we reap the bitter harvest of the Thatcherite years. When she cast out the coal miners, and sold our utility companies to her company cronies, who have bled us all dry.
There is no such thing as a “Free - market ” now, it is all controlled by the profiteers who care for nothing else.
Our Government should have the courage to embrace clean coal technology and Renationalise and expand the coal industry.
Why do we import 44 million tons of coal per; year, when we could, - and should be producing it ourselves.?
Face the facts, - support British mining, and support British employment.
- Mick Westwood., Staffordshire., 12/11/2009 09:56

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How is it that the French Government, which owns 80+% of the EDF shares is allowed to manipulate and rip off our energy supplies? Our goverment, which has given away our world lead in Advanced Gas Cooled reactors and any control over energy suppliers is now going to give EDF and other foreign owned companies greater control of our nuclear generating capacity?
Utter incompetence!!
- Dai, Edinburgh, UK, 12/11/2009 09:03

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RACKETEERS,NO OTHER WORD FOR THEM,AND ALLOWED TO BE SO BY THE LIB-LAB-CON LIARS,THIEVES ANDTREACHEROUS RACKETEERS AT WESTMINSTER.
- rick, southend england, 12/11/2009 08:45

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What else does one expect with these MONEY GRABBING
They have NO thought for the likes of YOU or ME
BUT there will come a time when they will be BEGGING us to use their energy
There is an OLD saying and there is a lot of truth in it, I have seen it happen a lot on MY life time
WHAT GOES AROUND COMES AROUND
Just a matter of waiting to see
- Alan Hammond, Egham Surrey, 12/11/2009 07:53

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So people how do we bring about real change?
Not just Labour out, Cons in. That will do VERY little,a s we all subconsciously know.
Do you not long to wake up with some good news, some honest reporting about honest politicians doning good things for our country?
This is not a European phenomenon sad to say ,Euro-sceptics, where good sense still pervades daily life.
Police putting mums onto ‘black lists’, pensioners being arrested and fined for swearing!
Please assure me that the MADNESS enveloping the UK is media-driven or pre-election, because, people, it is INSANE!!!!!!
- adrian, europa, 12/11/2009 07:49

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