Energy Companies Fail to Pass on Wholesale Price Drops As Energy Bills Are 20% Higher Than Average

Homeowners are expected to face record heating bills this winter, leaving the energy firms with huge profits after the coldest winter for 30 years.

There has been a drop in the wholesale cost of gas, yet bills are going to be, on average, 20 percent more expensive than they were this time last year. This could leave typical households with a combined electric and gas bill of £616 this quarter – over £100 more than last year.

However, it isn’t just the cold winter that’s to blame: annual bills have risen by 127% according to the Daily Express, from an average of £543 in 2003 to £1,233.

Energy expert of Consumer Focus, Richard Hall, said: ‘suppliers have failed to fully pass on wholesale price cuts’ and did not reduce the costs before householders turned their thermostats up for the cold winter.

He added that this will leave suppliers with ‘rocketing profits’ whilst millions of consumers are worried about how they can afford to stay warm in their homes.

This winter has seen an estimated rise in energy consumption by 30 per cent. According to the Office of National Statistics, the elderly are most at risk from the cold, and there have been an extra 36,700 more deaths reported.

It is unclear whether wholesale price cuts will be passed onto customers any time soon. However, there are measures you can take to lower your bills and reduce energy consumption in the home. This includes installing energy efficient double glazing in windows, and cutting down on energy usage through energy saving light bulbs, turning off electrical items and more.