Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue
Home > Big six energy firms have overcharged customers by £2.9 billion

Big six energy firms have overcharged customers by £2.9 billion

6th February 2015 | Published by Evolution Money

The recent cuts to energy bills made by the big six energy suppliers should have been made earlier and should have been much bigger, says the consumer watchdog, Which?

Which? said that the energy firms had failed to keep their standard tariffs in line with oil and gas wholesale prices for at least two years. Consequently, those households following a standard energy tariff found themselves £145 worse off by the end of 2014. The six major energy firms, therefore, charged their customers a total of £2.9 billion more than they could have done.

Energy UK, the industry body, responded to the criticism saying that firms cut their prices as soon as they possibly can.

Richard Lloyd, chief executive for Which?, said that their research questions the process used by energy suppliers to set their prices during the last twenty four months. He also feels that they needed to explain why their bills have not fallen further despite the dramatic drop in wholesale prices.

The six major energy firms are Scottish Power, RWE Npower, Centrica, E.On, EDF Energy and SSE. They dominate the energy supply market, only 5 per cent of which is supplied by smaller companies.

Which? said that these smaller suppliers are offering lower prices and yet are not able to put enough pressure on the big six to cut their prices.

Lawrence Slade, chief executive for Energy UK, said that the big energy firms buy wholesale gas on the futures market, ‘hedging’ or protecting themselves against future price increases. As a result, they do not immediately benefit from lower prices themselves and so are not able to pass any savings onto their clients. When companies can afford to pass their savings on, they do so, he said.

Category: Money
This post was written by Evolution Money
Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 90 out of 100, based on 112 reviews over the past year. 112 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoThe Finance & Leasing Association is the leading trade body for the motor finance, asset finance and consumer credit industries in the UK.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Pin us on Pinterest
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 8 St John Street, Manchester, M3 4DU. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2017 Evolution Money | Privacy Policy | Cookie Usage | Complaints Policy | Breaking Down Our Loans | Terms & Conditions
Apply Online
I want to borrow £


You will receive a call today to continue with your application.
Thank you for taking the time to fill in our online enquiry form. Unfortunately in this instance we won't be able to help as being a homeowner is one of our primary requirements.
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution