Greedy energy giants have pushed up household bills by more than £250 a year and given their profits a multi-billion pound boost.
New research reveals today that power industry mark-ups – the difference between what firms pay for energy and the price they charge customers – rocketed by 39% for electricity and 69% for gas in the past 10 years.
That has added more than £91 to the typical home’s electricity bill and a whopping £165 on what we pay for gas.
One energy boss is now warning that power bills could soon outstrip mortgages as our major household expense.
And it means firms are pocketing more than £6billion extra than a decade ago.
The shocking figures have been unearthed by Labour’s Shadow Energy Secretary Caroline Flint, who says they show that it’s the greed of energy fatcats that is driving up power bills.
She said: “They always blame rising global energy prices for putting up people’s bills, but these figures show they’ve been increasing their profits on the back of spiralling energy bills for hard-pressed households.
“If they won’t treat customers fairly, the public deserve tough action. Labour would create a tough new energy watchdog with the power to force firms to cut prices when the cost of energy falls.”
In 2002 the wholesale price of electricity was 1.67p a unit and the retail price 8.9p, giving the industry a mark-up of 7.23p. By 2012 the retail cost was 4.51p and the retail price 14.5p, increasing the mark-up by 39% to 9.99p. The equivalent figures for gas saw the wholesale cost rise from 0.55p to 2.05p and the retail from 2p to 4.5p, raising the mark-up from 1.45p to 2.45p – a 69% rise.