The Big Six energy suppliers profit margins hit an all-time high!
The Ofgem Data, that was published on the 31st of August 2017 showed that the big six energy suppliers recorded their highest ever profit margins.
Ofgem revealed that the average pre-tax profit margin amongst the big six energy suppliers increased from 4.15% to 4.48% in 2016. To put this into perspective the average profit margin for the same providers in 2009 was just 0.89% (Guardian, 2017).
Suppliers with the biggest profit margins:
- British Gas (Owned by Centrica) achieved the highest profit margin at 7.18%.
- SSE was joint second with a profit margin of 6.95%.
- E.ON also with a profit margin of 6.95%.
Ofgem also found that customers are becoming savvier when choosing their energy supplier and are changing more frequently to find better deals. June 2017 saw an influx of switches, resulting in the highest number of electricity switches since June 2011 and gas switches since 2009 (Guardian, 2017).
Furthermore, “In a competitive market, we expect suppliers to drive down costs and the prices they charge their customers; if they don’t, their customers will switch to rivals who do” (Ofgem,2017).
Unlike the big six energy suppliers, we are a not-for-profit company with the sole aim of preventing fuel poverty. All the profits we make are reinvested, to help keep our tariff prices low. So, the bigger we become, the cheaper we will be.
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