Yesterday was the big day where energy bosses sat before a committee at Parliament to give evidence as to why energy bills are so high.
Bosses from the Big Six and two smaller energy companies, Ovo Energy and Co op had to justify their recent price increases, which comes to an average rise of 9.1% for the four of the Big Six.
It boils down to how Ofgem illustrated that there has only been an increase of 1.7% in wholesale costs (what energy companies were initially blaming the hike on) the equivalent of £10 on an energy bill, which begs the question as to where the extra price rise is going. Typically the energy bosses offered several excuses for their increases.
William Morris from SSE was regrettable for increasing bills for people struggling but put it down to transportation costs and environmental schemes saying they’ve risen by 10% and 13%.
Stephen Fitzpatrick from Ovo Energy couldn’t understand why prices were rising because he claims to buy gas at a cheaper price than he had done in 2009. He went on to say how the Big Six are charging customers the maximum price they can get away with to people who most probably would not leave them, claiming they are competitive with prices.
Throughout the hearing, the (so called) energy bosses, not necessarily all the CEO’s of the companies received some intense interrogation from Labour MP John Robertson. John Robertson grilled the energy companies for charging customers for writing letters informing them that they are in debt. “Go back to your companies and stop these charges,” he tells the energy chiefs.
After the session finished it was clear to say that not much was solved and energy companies will still offer excuses.