energywatch calls for more price cuts as customers face among highest bills in Europe

Energywatch logo for press releases

Thursday, 02, Aug 2007 12:00

energywatch today said that UK householders and businesses are still paying too much for their energy and called for energy companies to lower their prices. Speaking on the day that British Gas owner, Centrica announced a significant increase in half-year profits, the watchdog said it was clear that companies had room to bring prices down further.

In the three years to 2006 gas bills soared by 94% and electricity bills climbed by more than 60%. Since then wholesale gas prices – the single biggest factor behind the increases – have collapsed by 50% but retail prices have fallen by just 15%.

energywatch highlighted a recent report from Oil and Gas UK that shows Britain’s biggest businesses are now paying more for their gas than anyone else in Europe. energywatch is challenging the industry to justify why, when the UK claims to have the most developed competitive market in Europe, big users are paying the highest prices and domestic and small business consumers’ prices are only in the middle of a the European league table.

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. Price cuts so far have not reflected the savings that suppliers have enjoyed over the last year and I call on suppliers to cut their bills.”

Current prices:

Gas – Medium user (GB) Current

2003 2004 2005 2006 2007

British Gas £370 £402 £451 £707 £568

EDF Energy £324 £337 £377 £641 £576

Npower £329 £358 £402 £628 £532

Powergen £311 £346 £391 £644 £541

ScottishPower £319 £342 £397 £622 £590

SSE £326 £352 £366 £607 £534

Average Bill £330 £356 £397 £642

Electricity – Medium user (GB) Current

2003 2004 2005 2006 2007

British Gas £237 £259 £269 £428 £359

EDF Energy £240 £251 £265 £357 £357

Npower £234 £250 £273 £400 £376

Powergen £241 £252 £275 £392 £372

ScottishPower £251 £257 £270 £379 £379

SSE £246 £257 £263 £374 £355

Average Bill £242 £254 £269 £388 £367

Notes to Editors:

• energywatch is the independent gas and electricity consumer watchdog. We provide free, impartial information and advice to energy consumers who are experiencing difficulty in resolving complaints directly with their energy supply companies. Consumer helpline 08459 060708 Typetalk (for those with hearing or speech impairments) 18001 08459 060708. Website: www.energywatch.org.uk

• Price comparisons can be found on the energywatch website or via the helpline

• Oil and Gas UK is the trade association of the offshore energy industry. Their report can be found at http://www.oilandgas.org.uk/issues/economic/econ07/index.cfm

• energywatch has spearheaded demands for a full investigation into the working of the energy market

• Average UK domestic price increases and reductions calculations weighted on market share.