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Citizens Advice call for further energy price cuts

Recent energy price cuts by suppliers are "inadequate" and should be further reduced, Citizens Advice has said.

In the wake of official figures released by Ofgem, Gillian Guy, chief executive of Citizens Advice, said: “The inadequacy of recent energy price cuts is now clear.

"Low wholesale costs are allowing energy companies to increase profits whilst barely cutting energy prices. The ball is now back in the energy firms’ court to actually compete with each other on further and deeper price cuts.

“Consumers need a better offer than the price cuts announced so far to show that energy firms are really passing on a year of falling wholesale costs. Households that are struggling to pay their bills will rightly be angered that falling wholesale costs are being passed on more quickly to shareholders than customers."

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Labour: Energy firms failing to pass savings to consumer

Caroline Flint Credit: PA Wire

Labour today accused energy companies of failing to pass on the full savings from wholesale costs falls to consumers as official figures indicated they are set to see profits soar despite the recent price cuts.

Caroline Flint, Shadow Energy and Climate Change Secretary, said: “These figures show that the profits of the big energy companies are set to soar on the back of big reductions in wholesale costs and tiny cuts to household bills.

"The reason energy companies are not passing on falling wholesale costs is because the Tories and Lib Dems voted against giving the regulator the power to cut bills.

"They had the chance to stand up for millions of families. Instead, they stood up in favour of the energy companies.

"They now have nobody else to blame for the failure of the energy companies to pass on the full savings from wholesale cost falls to all consumers."

Ed Davey: Consumers want bigger savings

Ed Davey Credit: PA Wire

Energy secretary Ed Davey has said people want to see bigger savings on their energy bills, not bigger profits going to the Big 6, as he urged consumers to consider switching supplier.

Mr Davey said: "People want to see bigger savings on their energy bills - not bigger profits going to the Big 6.

"Big energy companies face record competition thanks to our reforms. Customers won't stay if they're not getting a fair deal.

"There's never been a better time to switch supplier and save," he said.

Energy firms 'set for profits boost' despite price cuts

Energy companies' profits are set to increase as wholesale prices fall, Ofgem says.

Energy companies' profits per customer are set to increase despite recent price cuts, according to figures from regulator Ofgem.

The watchdog said the average pre-tax margin a typical supplier could make over the next 12 months is around £114 - 9% of the annual dual fuel bill.

This marks an increase of £9 on November's estimate, and is driven by the falling wholesale cost of energy, Ofgem said.

It said its estimate for the average dual fuel bill for the next year was £1,305 - down £21 from its previous prediction in November.

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Insolvency cases dropped to nine-year low in 2014

Insolvencies at lowest in nine years Credit: PA Wire

The number of people declared insolvent in England and Wales last year was at at its lowest level in nine years.

Some 99,196 cases were recorded last year, figures from the Insolvency Service showed.

It was the first time the annual total had dropped below 100,000 since 2005.

The latest annual total, which is made up of bankruptcies, debt relief orders and individual voluntary arrangements (IVAs), also represents a 1.8% fall on the number of personal insolvencies recorded in 2013.

  1. Chris Choi

Smaller power firm Ovo squares up to Big Six with 10.4% cut

The Energy Secretary has warned big power firms that they "can't hide", after one of their smaller rivals offered more than double the price cut of the so-called Big Six companies.

Ovo has more than doubled the cut offered by its Big Six rivals Credit: PA

Today's price drop means that while the average customer of the major firms will see a four per cent reduction in gas prices, customers of Ovo will see a drop of 10.4 per cent.

Now consumer groups are urging companies to drop prices further - and extend their reductions to electricity prices.

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