Energy News

Energy Suppliers Report Major Profits

Monday 18 February, 2008

By Denae D’Arcy

Energy consumers are outraged at the latest British Gas profit numbers reported by The Daily Express. MPs are calling for answers from suppliers in light of profits.

The newspaper says the energy giant is set to announce an annual profit of almost £600 million, an increase of £95 million on last year. The rise represents a raise of 67% in profits per customer.

British Gas (www.britishgas.co.uk) isn’t the only company expected to have a high profit margin this year. Scottish Power (www.scottishpower.com), npower (www.npower.com), EDF (www.edfenergy.com), and E.ON (www.eonenergy.com) are also expected to release staggering profit figures. Industry analysts predict the sector could record combined profits in the region of £4.5billion.

MPs have responded to the news by demanding energy suppliers be accountable for high prices and should answer to competition chiefs.

Labour MP John Grogan acknowledged anger among consumers and vowed to act:

“I am deeply concerned about the impact of escalating gas and electricity prices, and these profit figures underline the need for urgent referral to the Competition Commission to ensure consumers’ interests are being protected.”

Grogan continues:

“I have pensioners in my constituency who just don’t get out of bed now because they can’t afford to heat a room – and children who don’t have a warm room to do their homework in.”

More than 70 MPs have asked for a competition inquiry into the energy market. This could lead to competition authorities being called in.

Chris Eagle, Commercial Manager for Energychoices.co.uk, urges energy consumers to vote with their feet:

“The profit report will doubtlessly prompt consumers to question their suppliers’ credibility. The most important thing consumers can do is compare energy prices to check that they are getting the best deal for their area. British Gas could still potentially be cheapest even though prices have jumped over the last few weeks.”

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