Energy Companies Under Fire After Levy Cuts

Some of the larger energy companies have come under harsh criticism and have been accused of “getting away with green murder” as it transpires that savings made from the green levy cuts have not fully been passed onto the consumer.  So far only two of the Big Six have bothered to announce savings which will be passed onto their customers.

 

British Gas and SSE have so far stepped up to the plate announced the savings (currently around £50) will be passed directly onto households, even those who are on fixed rates will see a fall in their annual bill next year. MoneySupermarket.Com have spoken out against the companies, emphasising the dissapointment that will be felt by many as they realise they may not benefit from the Government’s levy cuts.  George Osborne has confirmed recently that the green levies will be rolled back as part of his Autumn Statement, with Ed Davey confirming that the saving passed onto energy companies is equal to around £50 per household per year.

 

Clare Frances, chief editor at MoneySupermarket.Com said, “The reduction of green levy commitments for UK energy providers showed all the signs of being a good thing for struggling households who expected to see it reflected in their energy bills. However, indications are that not everyone will win in the war on the cost of energy and some will essentially lose out because they were savvy and switched to pay less in the first place.”

 

This is unfair and will be ultimately detrimental to a marketplace which is already feeling the weight of the monopoly effect of the Big Six. Punishing customers for being ‘savvy’ and switching energy suppliers is not something that should be allowed, switching suppliers is the one thing  which may rescue the market and create some much needed competitive stimulation.  The savings passed onto energy companies should be brought down evenly across the board rather than offering customers a selective break from the high costs depending on which supplier they’re with.   The Big Six, in hearings last month regarding their excessive inflation-busting price rises, blamed the Government’s environmental schemes for the need to raise prices.  Now that the Government have eased off on those levies, it’s only right the energy providers pass these savings onto customers and announce that they will do so immediately.  It is important that the Government and energy sector work together on this issue but it also equally as vital that the Government stand up to the Big Six and start making some demands in defence of the British public.

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