Profits soar

Energy users have reacted with fury after npower posted a 25% rise in profits for 2012, months after hitting its customers with an average 10.8% hike in bills. The company this week reported a profit of £390m, compared with £313m in 2011. This works out as a profit of around £60 for each of the 6.5m households the company provides energy to.

Ann Robinson, director of consumer policy at uSwitch.com believes npower will need to answer questions from customers asking why their energy bills were raised in the first place. “It’s a valid question and npower customers deserve a valid answer, especially those who were forced to go cold this winter for fear of the cost of heating their home,” she explained. The right course of action will be for npower to help UK consumers by cutting its prices again, Robinson emphasised.

While energy suppliers certainly don't rush to lower their prices in line with a fall in wholesale prices, does George Charles, of the money-saving website vouchercodes.pro.co.uk, have a point when he says "consumers do need to remember the energy companies aren't the NHS. They are part of a privatised industry that has obligations to its shareholders, so we shouldn't begrudge them a profit margin?"

I would be interested to hear your thoughts.