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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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Energy companies: once again the customer is being ripped off says AM
August 6, 2007 3:49 PM
Two thirds of the money being saved by energy companies through buying cheaper gas is being pocketed by shareholders whilst customers are left paying through the nose, according to a new report from the consumer watchdog Energywatch.
These figures have been revealed in a report by Energywatch, which showed that despite the fact that wholesale gas prices have declined by 50% since 2006, only 15% of that cut has been passed on to the customer. Allan Asher, Chief Executive of Energywatch, said: "UK consumers continue to pay among the highest prices despite us having what is supposed to be the most competitive market."
Welsh Liberal Democrat Social Justice Spokesperson Peter Black said:-
"The energy companies are taking the penny and the bun. It really isn't surprising that British Gas Residential profits for the first six months of this year are £533 million compared to a loss of £143 million in the first half of last year. As British Gas owners Centrica's own figures show, consumers have used less gas and electricity in the first half of 2007 compared with the corresponding period in 2006. Once again the customer is being ripped off. We use less - they pocket more.
"Successive Tory and Labour governments have been over-fond of posturing about how competition would benefit the consumer. Instead, only shareholders are gaining from this latest bonanza, and thanks to Ofgem, the energy companies can now lock new customers into these lousy deals for long periods of time. As the energy companies have proven themselves unwilling to look after the interests of their customers, Labour Ministers should refer their actions to the Competition . The regulator must think again about this decision and at the very least link new contracts to an investment by the companies in energy-efficiency in our homes."
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