Official energy profits probe urged - News in brief - Evening Standard
       

Official energy profits probe urged

Campaigners have called for an official inquiry into the "obscene" profits being made by energy firms, claiming that consumers are being "ripped off."

Unison and the National Right to Fuel Campaign claimed that increases in energy charges to consumers were almost £2.5 billion more than the extra costs in producing and selling gas and electricity.

Companies were passing on wholesale costs straight to consumers even though many were actually setting the price themselves, a report by the two organisations claimed.

The industry's regulator Ofgem was urged to launch an immediate inquiry into claims that the average family was paying £100 a year to finance a "golden hole" in energy firms' accounts.

Dave Prentis, general secretary of Unison, said: "It's all very well Ofgem calling for windfall profit taxes in the future but what is it doing about the current rip-off? We want action taken now.

"Hard-working families are desperately worried about increasing fuel bills, rising housing costs, food costs and millions of public sector workers are being told they must accept pay cuts.

"Pensioners are finding it a huge struggle, despite the winter fuel payments that have been wiped out by these greedy companies."

Lesley Davis, chairman of right to fuel campaign added: "It beggars belief that these energy companies are announcing further price increases when we know that, while consumers paid £8.2 billion more for their gas and electricity in 2006 than they did in 2003, fuel costs rose by some £4.5 billion.

"A significant part of the remainder can be accounted for by companies earning higher profits at the expense of low-income consumers."

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