16:47 03 February 2015
A report released by Which? suggests that there is ‘no justification’ for energy providers’ prices. It added that the ‘big six’ energy companies are failing to pass on price cuts.
The report came as Ofgem, the government department charged with protecting the interests of electricity and gas consumers, advised families to save money by making packed lunches or by jogging instead of going to a gym.
Which? executive director Richard Lloyd said: "Our analysis places a massive question mark over how suppliers have been setting prices over the last two years.
"They now need to explain to their customers why bills don't fall further in response to dropping wholesale prices.
"While the competition inquiry should establish beyond doubt whether the price people are paying today is right, consumers will now look to politicians of every party to set out how they'll deliver fair and affordable energy prices in the future."
Meanwhile, Eva Jasiewicz, from Fuel Poverty Action, said: "Ofgem are blaming the poor, they should be putting the blame on the big six.
"The big six energy companies have been making massive profits (and) no one's asking the CEOs of these companies to cut down.
"They're giving themselves multimillion-pound pay packets, but they're not passing on the cuts at all in the price of fuel to consumers."