Energy companies are passing on falls in wholesale costs, Lawrence Slade, chief executive of Energy UK – the trade association which represents, amongst others, Britain’s Big Six utility supplies – announces today.
In response to Opposition claims that Ofgem, the energy watchdog, needed extra powers to force cuts on companies, he said:
“No new powers are needed. Energy suppliers are already passing on price cuts to customers. With over 25 suppliers in the market competitive pressure is forcing down prices every week.
“When people shop around they can easily find deals that are over a hundred pounds cheaper than this time last year and line with falls in the wholesale energy price part of energy bills.”
Slade also pointed out that prices were a commercial matter for individual companies who often buy many months ahead so price falls take time to feed through. Wholesale prices make up under half of average energy bills.