Electricity and gas bills to fall this summer?

Regulator urges suppliers to slash energy prices

By Lezanne Janse van Rensburg, 9th December 2009

Consumers can look forward to possible energy price cuts early in 2010. That is if Ofgem - the energy regulator - gets its way.

Several of Britain's leading energy suppliers have been urged in recent months to give consumers some financial relief regarding energy and gas billing. The decision to bring these costs down was made after British consumers were struggling to keep up with rapidly increasing gas and electricity bills.

According to Ofgem, energy companies' reasons for the high gas and energy bills could no longer be justified. A number of utility companies stated that they increased costs in an attempt to protect their clients from a sudden surge in wholesale prices at the onset of the financial crisis. Other energy companies said that the increase in energy billing was necessary for the future development of alternative power sources.

In response to the companies' reasons for high electric bills, Ofgem said: "Ofgem's role is to ensure that companies can invest, but do not use investment as a shameful excuse to overcharge consumers."

Statistics show that almost none of Britain's top energy suppliers have implemented any energy price cuts in the first half of this year.

Statistics show that almost none of Britain's top energy suppliers have implemented any energy price cuts in the first half of this year. This is partly due to the wholesale energy prices soaring during the first few months of the year.

Unfortunately, the cut in gas and electricity bills won't last very long. According to a statement made by Ofgem in October energy bills are expected to rise substantially within the next 10 years.  Plans to purchase several materials and supplies for future developments, and the goal of meeting climate change targets are the main reasons for these increases in energy billing.

Claims Financial