allaboutwomen

Energy companies may be exploiting customers, fears the UK watchdog. Ofgem is investigating whether consumers are being ripped off. Going on the basis of my own recent experience, it's not hard to predict the outcome.
The problem with energy providers is, well, it's like in any relationship that's gone sour, they've learnt they can take us customers for granted. One side has stopped making an effort, and that has led to inexcusable complacency.

The solution is simple: anybody worried about their energy bill might consider threatening to swap provider. Or, indeed, actually doing so. For a quick comparison of what energy providers charge, visit the Which? energy site (details below).

Just the threat of leaving can be enough to trigger substantial discounts, as I personally discovered when I left Scottish Power. After learning that I was planning to take my custom elsewhere, the Scottish firm promised a new package that would knock £613 off my bill if I would agree to stay. My annual bill is falling from just under £1,600 a year to less than £1,000. Scottish Power has even thrown in free boiler care worth an estimated £150 per year and a free device for measuring electricity usage.

If Scottish Power can charge me more than a third less than it was before, while still - presumably - making a profit, that suggests the firm is enjoying vast profit margins.

Oddly enough it was only when I threatened to switch providers that Scottish Power stopped taking my business for granted and revealed more affordable energy packages. If more of us threatened to move elsewhere, the energy providers might no longer be able to charge us excessive amounts.

Unless, of course, Ofgem finds evidence the the big six providers are colluding together to fix prices. That may well be among the areas the energy watchdog is investigating.

The latest Ofgem investigation comes only two years after its last inquiry into energy providers.
The findings of Alistair Buchanan, Ofgem chief executive, may be enough to trigger a Competition Commission inquiry.

In late February, Centrica, the parent of British Gas, is set to report record profits of at least £2.1 billion, against £1.68 billion in 2009. The news will almost certainly intensify complaints that the firm - the biggest energy provider in Britain - is exploiting its customers to achieve such impressive results.