Ofgem predicts energy suppliers to double profits
Energy regulator Ofgem forecasts the so called big six energy firms to double their profit margin into next year.
It was only this time last year that Ofgem predicted that energy suppliers would make up a pre tax profit of £53 per household built up by a margin of 4%. Although in the coming year they anticipate energy companies to exactly double this making up £106 per household thus increasing their margins to 8%. In a quick defence British Gas came out the wood work claiming that although they had fixed their prices for the coming winter ensuring that prices would not increase that the profits are far from lining their pockets and are in fact being shovelled into future resources such as oil rig constructions in the North Sea, safe guarding our gas supply for the coming decades.
Although Ofgem frowned upon this response claiming the energy market was surprisingly still not ticking along as it should. The regulator has stated that it will officially publish it's findings this Thursday. Energy UK which is the official representing body to the supplies suggested that Ofgem's figures were totally inaccurate, implying numbers should not be published to the general public which don't exist. Expanding that using inaccurate estimates leaves the public with a warped perception on energy companies leading us to nowhere.
Ofgem countered the remarks by saying Consumers need a clear explanation from suppliers as to why, when costs are falling, they are not seeing cuts in energy prices as we would expect in a competitive market."Bizarre as it sounds Ofgem also said that although profit margins are more than likely to increase over next year, bills however are most certain to fall. The regulator is due immense credit to it's consistent efforts in ensuring consumers are provided with the very best deals possible. Which is no surprise hearing that only one energy company out of the big six had its pricing policy approved for the coming year. My Electric Radiators aim to provide you with the latest energy news straight onto your doorstep. They are also leading suppliers in energy efficient electric heating systems and are consistently developing advanced energy efficient heating products using the latest technologies. Their philosophy is that by providing you with the very latest energy saving electric radiators they can help make a real difference, not only through lowering your energy bills but by decreasing your carbon footprint. If you would like to know more then why not call them today on 01423 81167.