'Broken' Energy Market To Reap £1.7bn Profit For Firms

Britain’s energy suppliers are set to rake in a massive £1.74bn in profits from hard-pressed customers’ bills over the next 12 months, according to a shock new report.

- ADAM FORREST

And a separate study found that regulator Ofgem’s energy price cap is preventing customers from accessing lower tariffs, harming competition and boosting inflation.

Rishi Sunak’s government has indicated it is unlikely to step in again to protect Britons still struggling with their energy bills – dismissing the idea of another subsidised price guarantee. However, despite the ongoing cost of living crisis, UK energy companies will be allowed to increase the amount they make from customers on variable-rate tariffs.

Suppliers have seen the annual profit they make from the average customer on a variable tariff rise from £27 in 2017 to £130 in early 2023, according to Warm This Winter – a coalition of anti-poverty and green groups. The gas and electricity giants will make £1.74bn profit from variable customers alone in the year ahead, according to the report, produced in partnership with Future Energy Associates analysts.