Energy network companies “making billions in excess profits at the expense of consumers”, says Citizens Advice
Responding to the Energy and Climate Information Unit’s report on the profits of electricity distribution network companies, Gillian Guy, chief executive of Citizens Advice said:
“Electricity distribution companies are making billions more than expected by Ofgem at the expense of consumers, driving up bills at a time when many people are struggling to make ends meet.
“This issue is not limited to electricity distribution companies. Our research shows that across the energy networks market, companies are raking in £7.5bn in unjustified profits.
“Energy network companies should return this money to consumers, as some companies have started to do. If they don’t return the money, the government should step in to make sure customers receive a rebate.”
Notes to editors
- Citizens Advice calculated the £7.5bn estimate in Energy Consumers’ Missing Billions.The figure is calculated using Ofgem’s Price Control Financial Models, RIIO Annual Reports, OBR/ONS inflation data and Bank of England data on daily real returns on Government bonds as an estimate of the risk-free rate.
- The Citizens Advice service comprises a network of local Citizens Advice, 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.
- 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.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- 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.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.