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Citizens Advice calls for energy price cuts with “no more ifs and buts”

13 January 2015

Citizens Advice has called on the Big Six energy firms to do the right thing for their customers and cut energy bills.

Today, E.ON has cut its standard gas prices by 3.5%, equivalent to £24 off an average annual household gas bill. The charity has said that with wholesale costs having fallen steadily for a year, the other large energy firms must also pass these savings on to households struggling to make ends meet.

Gillian Guy, chief executive of Citizens Advice, said:

“There can be no more ifs and buts, all energy firms must now cut household bills. If E.ON can cut its gas prices so can the other firms. Consumers have seen their energy bills rise by a third since 2010 yet figures show wholesale costs to be at a four-year low.

“Consumers will welcome E.On’s gas bill reduction but the savings remain modest. If E.On has reduced its gas bill it should also be able to pass on wholesale savings by cutting its electricity costs.

“Many people are struggling to heat their homes and keep a roof over their head. More are now seeking our help with priority debts like rent arrears because of the toxic mix of rising bills with slow wage growth, low pay and short hours. The energy market must work for consumers, not just add to their misery.

“As it stands energy prepayment meter customers can pay a yearly average of £80 more for a second-class service. Citizens Advice wants to see energy suppliers reduce prices for all customers, not just those able to switch to get the best deals. It is unacceptable that energy firms have not even provided an adequate explanation for why they have so far failed to reduce prices.”

-ends-

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.