Profit from energy is £100 per customer

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

The profit margin for gas and electricity suppliers amounts to £100 per customer per year, it has been claimed.

According to energy regulator Ofgem, the gross profit margin for energy suppliers has increased since summer 2008 due to rising domestic energy prices and falling wholesale costs.

The figures take into account energy suppliers buying their supplies 18 months in advance, with costs peaking last December.

Ofgem announced last year that it would be carrying out a regular analysis of the link between retail and wholesale energy prices.

The regulator's report also reiterates that there was no collusion between the big six energy firms on pricing policy.

It also claimed that there was no evidence that electric and gas firms passed on wholesale energy price increases to their customers but failed to reduce costs when prices began falling.

Yesterday, Scottish Power cut its gas and electricity prices by 7.5 per cent and three per cent respectively.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.