Citizens Advice has called on the energy industry to be frank with its customers about why energy costs are so high, particular as wholesale costs are down.
Npower has revealed a 38% decline in its retail profits.
Citizens Advice Chief Executive Gillian Guy:
“It’s time for energy firms to be frank with their customers about why prices are so high and take steps to reduce bills. Fewer costs are being added to people’s bills through levies for things such as energy efficiency schemes, and with wholesale prices down, suppliers are now out of excuses.
“Energy firms need to make a level of profit that ensures the industry is sustainable but what is unclear to consumers is whether the price they are paying and the profits firms are making are fair.
“Energy bills are up a third since 2010 and these rising costs are putting extra pressure on already stretched budgets. The consistent decline in wholesale prices is a missed opportunity to help households save money and start to rebuild trust. The failure to pass on these savings acts as a reminder why it is really important the competition investigation delivers a more transparent market and gets to the bottom of whether people are actually paying a fair price for their electricity and gas.”