Ofgem has confirmed that wholesale energy prices have plummeted in recent months, with gas prices at their lowest since September 2010, and electricity costs now almost down to April 2010 levels.* The energy regulator has also issued a call for the 'big six' suppliers to explain if and how these substantial savings will be reflected in their customers' bills.
Jeremy Cryer from Gocompare.com Energy, commented: "Wholesale gas and electricity prices make up the biggest chunk of people's energy bills, and any upward movement in their costs inevitably result in 'necessary' price rises being imposed on households. It's only right, then, that people should expect to see their energy bills reduce just as swiftly when wholesale costs come down - but this doesn't always happen.
"Trust in energy companies has taken a real hammering recently, and not only have huge fines been levied on several of them for malpractice, the regulator has also said it is considering referring the industry to the Competition and Markets Authority to find out why competition isn't working for consumers. So now's the time for the big energy companies to prove how committed they are to their customers by either passing on the savings that they are making, or explaining why bills won't be falling.
"People needn't wait to see if they will benefit from wholesale prices falling while languishing on their current energy tariffs though. Instead, they should shop around carefully and compare their existing plan with the deals available from the UK's other energy suppliers - large and small - and if they find a better price, switch."
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Based on dual fuel, payment by monthly direct debit, averaged across all UK regions and based on an annual energy usage of 13,500kWh gas and 3,200kWh electricity (medium user). Correct as of 10/06/2014.
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