Ofgem has confirmed today that energy suppliers will be permitted to make adjustments to their profit margins within the price cap framework.
The decision comes as part of Ofgem’s ongoing efforts to ensure a balanced and competitive energy market.
Under the revised terms, energy companies are allowed to increase their profit margins by approximately £2 per year for each standard variable tariff customer.
Simon Francis, coordinator of the End Fuel Poverty Coalition, commented on the matter, expressing his concerns.
Mr Francis said: “When you look at the details of this price cap, the reality is that every unit of energy a customer uses costs double what it did a few years ago. The daily standing charges customers pay have also increased – doubling in the case of electricity.
“The Energy Bills Support Scheme has also been taken away this winter, while energy firms have been allowed to increase the profits they make per customer and vulnerable households have been left wondering what will happen this winter and beyond.
“Ministers had promised to consult on tariff reform to help the households most in need and who most rely on energy to keep themselves safe. Sadly, they have abandoned plans for a social tariff consultation.
“The government seems to be running out of enthusiasm to help people get through the energy bills crisis, and it is also now running out of time to act to keep people warm this winter.”
