Dismay at rocketing profits
The row over falling energy wholesale prices being passed on to consumers has been reignited with one of the Big Six announcing its profits have trebled.
E.on's UK arm, with an estimated five million UK customers, has reported an underlying net income for January to June of £2.6bn compared to £706m a year earlier.
Richard Hall, head of energy regulation at Consumer Focus, said: “E.on’s profits have jumped by 24% despite it selling off its profitable network businesses last year. Such a big increase, hard on the heels of British Gas profit rises, will leave customers questioning whether the price they’re paying is fair.
"Wholesale prices are now a long way from their peak and E.on has reported greater margins based on changes in their costs. This will reopen questions on whether falls in wholesale pricing are fed through fully."
As Hall suggests, profitable and successful companies are needed for the growth of our economy, but energy customers need to know the price they are paying is fair, and through a "competitive and transparent market".
I would be interested to hear your views.
The views and opinions expressed in this article are those of Elinore Mackay and do not necessarily reflect the official policy or position of Electrical Review. This content represents individual perspective and industry commentary.
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