UK electricity firms want to keep savings on cheap energy

08 December 2008

Electricity suppliers in the UK are reluctant to pass on the benefits of cheap gas and electricity to the consumers even as oil and gas prices have plummeted. Some of these companies have cut prices for a some of their customers to ward off action by energy regulator Ofgem.

The reduction in energy prices, however, are expected to benefit many customers of some of the dominant suppliers, some of whom are using pre-payment meters.

Ofgem had made 20 recommendations designed to improve competition and cut bills after a nine-month inquiry.

All the "big six" suppliers have now responded under threat of further pressure, including a full Competition Commission investigation.

Centrica, the owner of British Gas, said last week it had cut its tariff for customers with pre-payment meters, saving them an average of £22 per year.

Scottish and Southern Energy has also cut pre-payment tariffs. ScottishPower, owned by Iberdrola of Spain, said it expected to accept 15 of Ofgem's 20 points "in whole or in part". It will soon announce a £10 million plan to relieve fuel poverty this winter, after consultation with Ofgem.