H & R SERVICES (OXFORD) LTD

Today Ofgem, the Government's energy watchdog, announced that energy supplier profits have risen to £125 per customer. This is the highest profit margin since Ofgem began documenting supplier profits three years ago and is a £15 increase in just three months. The figure is based on existing energy prices with an average energy bill now standing at £1,345 However, Ofgem did say that it expected profits to fall back to around £90 per customer by next year.

Earlier this month, the average annual energy bill reached a minimum of £1,000 as suppliers removed the cheapest deals on the market, a figure that led Labour MP Meg Hillier to warn that Britain "is on the brink of an affordability crisis when it comes to household energy."

However, despite recent price hikes by energy firms and the government's readiness to blame retail profits a report by Deutsche Bank also blames international energy markets for the situation. Their report has found that a quarter of homes in the UK will be in fuel poverty by 2015. Fuel poverty is defined as when a household spends more than 10% of its income on energy bills in order to maintain an adequately warm house.

Martin Brough of Deutsche Bank said in the report: "While it is tempting for politicians to blame excessive retail profits, the reality is that the UK is once again a net importer of energy, and international fuel prices have doubled."

More energy is being imported than produced within this country as North Sea fields generate less gas and in the past ten years the virtual self sufficiency of the UK has taken a u-turn. With increasing dependence on imports of expensive gas and oil from the continent, many households will not be able to afford the 25% price rises which will occur in the next four years.

If you would like advice on improving the energy efficiency of your home or generating your own heat and power click here to contact H & R SERVICES (OXFORD) LTD today.

 

Submitted by The Office on Friday 14th October 2011