Figures show customers are being charged at least three times the price their suppliers pay for gas.
Wholesale costs have halved in six months yet bills have not fallen. It means customers on British Gas’s one-year fixed-rate tariff are paying an almost four-fold mark-up.
British Gas, which supplies around 40 per cent of homes, and other firms are under fire for their costs at a time when the Competition and Markets Authority is holding an inquiry into the energy supply business.
Its parent company, Centrica, announced profits of £900million for the first six months of the financial year. British Gas customers are paying between £1.35 and £1.50 per therm.
Yet the wholesale gas price paid by suppliers has hit a four-year low of less than 42p per therm, down from 72p in December.
The other Big Six energy companies – nPower, EDF, SSE, E.on and Scottish Power – charge between £1.21 and £1.37 per therm.
One therm of gas is enough to power a domestic boiler at full output for almost two hours.
Richard Lloyd, of consumer group Which?, said: ‘Energy companies should be passing on any savings from falling wholesale and network costs.
‘It’s no wonder that consumers aren’t confident that the price they pay for their energy is fair, especially when Ofgem has reported that supplier profit margins are set to double.
‘With energy costs the top consumer concern, the competition authority must leave no stone unturned in its investigation of the market and must establish the truth behind our energy prices.’
Source: Daily Mail