Britain’s householders could save more than £800m over the next 12 months on their energy bills if the big six suppliers took advantage of plunging wholesale power prices and cut their charges by as much as 5%, according to the founder of a price comparison website.
The claim from Mark Todd of energyhelpline.com came as the Fuel Poverty Action campaign group warned that because millions of consumers faced disconnection this winter it would launch an energy bill of rights on Monday.
He said there was no excuse for energy suppliers not reducing their charges given it was now possible to buy wholesale gas and electricity for delivery over the next year that are, respectively, 12% and 8% cheaper than they are today.
“If half of this was passed on to customers it would save £816m to that half of the country who are on standard [energy] contracts. These are the most loyal customers who are getting the worst deal, paying the highest rates and yet have no price guarantees,” he said.
Todd dismissed the suggestion from RWE npower and repeated by the energy minister, Amber Rudd, earlier this week that suppliers were holding back cuts because of the Labour party’s threat to impose a price freeze if they won power next spring.
Todd said companies could cut bills this winter and reimpose rises if Labour won power. They were just rehearsing “the same old excuses” for not passing on cost reductions, he said.
Fuel Poverty Action said it planned to unveil details of an energy bill of rights at the Commons which would assert the right to safe, affordable power as well as a right not to be disconnected from prepayment meters.
