Huge profits from energy companies announced

The profit margin for energy firms has risen to £125 per customer per year, from £15 in June, says regulator Ofgem.

The recent figures show that despite steep rises in fuel over the summer period, energy companies' profit margins are soaring. This is a major blow to older people, who have been hardest hit by fuel rises. Over 65% of single pensioners in Scotland are fuel poor; 23% are in extreme fuel poverty.

Age Scotland's Campaigns and Communications Manager, Lindsay Scott, said: "Although we understand that energy companies need to make a profit, it is difficult to see these figures as justifiable.
"Older people have been hardest hit by rises in fuel prices this year, and to see enormous profit figures shows that the energy companies are not taking customers' needs into account. Older people are being punished by the high costs of fuel, while energy companies reap massive profits.

"We want the energy regulator, Ofgem, and the Government to look closely at the situation and take serious action.

"Ofgem needs to ensure that fair pricing is in place, that the market is fully competitive and that comparisons across energy companies are like for like so people can easily see what is the best deal for them.

"The government needs to ensure that pensions and benefits reflect the high costs of fuel and that robust measures are put in place to tackle fuel poverty. It is the most vulnerable people that are severely affected by energy companies' behaviour and fuel fluctuations, and the government needs to make sure that enough support is in place to help older people."

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