Big Six Energy suppliers show a high profit margin – An eye opener!

October 10th, 2019
Big

For all those who have been loyal customer of the Big Six energy suppliers, there is something to think about. A small tweaking of the brain with the current facts will you’re your image of the Big Six. If you regard them for their quality then mind well there are numerous energy suppliers in UK that offer the best quality service at a cheaper energy cost. Moreover, the Big Six have proved time and again that they are munching huge chunks of profit from their sticky customers.

As per the latest Ofgem report, the Big Six gas and electricity suppliers have shown record high profits in 2016. The report was declared in July but was modified by adding the profit margin of British Gas, the latest to raise its energy prices. Statistics suggest that average pre-tax margin of these companies had shot up to 4.48% in 2016 when compared to 4.15% in 2015. The margin was just 0.89% in 2009 and has boomed in the last couple of years.

Of all energy suppliers, British Gas showed the highest pre-tax margin of 7.18% while SSE and E.On enjoyed a margin of 6.95% in 2016. Even when the companies shout out loud about the environmental and transmission cost that they have to suffer, Ofgem clearly rejects such foul cries. Its report states that the cost of environmental and social obligations has dropped down to £109 on an average dual-fuel bill in 2009. It was recorded as £91 in 2016 and £86 in 2015.

Apart from the report by Ofgem, the Competition and Markets Authority proved that the Big six energy suppliers were overcharging by a whopping £1.4bn annually. The report had become the talk of the town and the Prime Minister promised an intervention for families suffering from expensive Standard Variable Tariffs. However, no steps are taken yet to save the customers from money sapping suppliers and to get them cheaper energy bills.

To save themselves from this brutal behaviour of the Big Six, energy customers should switch gas and electricity supplier. Although, Ofgem reports the highest number of energy switches, there are many who continue with the same supplier. As per reports, 380,000 electricity customers switched to a cheaper energy supplier in June 2017.

However, there are energy price comparison experts who feel that the number of energy switches can still go higher. Shay Ramani, founder of energy price comparison site FreePriceCompare stated that “The profit margin of the Big Six is proof that nothing can deviate suppliers from raising energy prices. It’s in the hands of the customers to either stay with such suppliers or switch to energy supplier that offers cheaper energy deals. Energy price comparison should be done on a frequent basis to find cheaper energy providers. This is a fruitful exercise to get the lowest energy bills.”

Energy price comparison is a troublesome task for many energy customers as they can either can’t spare time for it or lack the know-how of all UK energy suppliers. FreePriceCompare can help you in this case as we compare all UK energy suppliers, check their lowest and highest tariffs so as to suggest the cheapest energy prices to our customers. We are a one stop destination for all things energy.

If you are looking for a helping hand to get a cheaper energy supplier then check our website as we suggest the cheapest energy quotes online. You can leverage our hassle-free service to find a cheaper energy supplier. Again, to help you sort out any of your dilemmas, we have an ever ready team of energy price comparison experts. They will support you through the energy switch process. For more details, feel free to visit us at https://freepricecompare.com/ or call our team on 02034757476.

Compare and see how much you can save on your energy bills

4000+ reviews