Energy companies are slow in passing on savings to their customers according to Consumer Focus, an independent consumer watchdog.  This could add up to as much as £74 per household per year!  However, the energy companies argue that the bills are not based upon wholesale prices alone and they include the cost of distribution of the gas and power around the country whilst trying to meet the Government's carbon emissions target.

 

The energy companies also claim that they purchase their requirements well in advance and therefore cannot automatically pass on savings to their customers. 

The Energy Retail association says that other costs have gone up and there is no sign that these have been passed on to the customer.  Ofgem stated that Consumer Focus have only taken elements of the methodology for calculating wholesale costs.  "They have borrowed some of it but they appear to have made assumptions that are simply wrong," the regulator said.

 

EDF Energy, E.On, Scottish Power, Scottish and Southern and NPower have all lowered their prices by the end of March.

 

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But don’t wait for the energy companies to make savings - check out our new Water & Energy Saving Kit to help you reduce your energy bills by up to £200.