Massive profits posted by British Gas owner, Centrica, underline the need for effective regulation of energy companies, the Welsh Liberal Democrat Social Justice Spokesperson, Peter Black has said.
Mr. Black was speaking in the light of the announcement by Centric that they had made £571 million profit last year, up from £95m on 2006. This is a 540% increase at a time when prices for British Gas customers have recently risen by 15%.
"It is scandalous that energy companies are making such huge profits at the expense of their customers, many of whom are struggling to pay their fuel bills," said Mr. Black. "The recent hikes in gas and electricity prices are hitting some of the most vulnerable people in our society and adding to fuel poverty. Last year 1,400 people died in Wales from cold-related illnesses. With many more elderly people switching off their heating to make ends meet there is a danger that this figure could rise."
"I have noticed that when there has been an increase in wholesale gas prices then the energy companies are very quick to protect their profits by passing on that cost to their customers. However, when wholesale gas prices fall they are far more reticent to cut prices. There is now an urgent need for the Government to more effectively regulate the energy companies so as ensure that price rises are kept proportionate and to cut profiteering at the expense of customers."
