Are we being burned?

News is that British Gas is now making profits of £34 a second. The answer, not surprisingly, is a rather big yes, particularly when the bosses of the company have insisted that the huge profits wouldn’t trigger a new price cut for customers.

In the first half of this year, the energy supplier turned a £143million loss into a £533 profit despite reducing prices to give this year to give average savings of £207.

However, it all makes more sense when you learn that those cuts came on the back of three price increases last year that added around £269 to an average bill.

Energywatch chief executive, Allan Asher, points to a “cosy club” operated by the big six power firms. Says he: “It’s not illegal price fixing of the kind British Airways and Virgin got up to, But they don’t have to be that blatant – they send each other subtle signals and keep prices close to one another. It keep prices higher than they should be and consumers lose out.”

Uswitch.com’s Ann Robinson urges consumers to seek out cheaper deals. Says she: “Competition isn’t a spectator sport. It will only work if consumers and suppliers get stuck in.”

To be honest, it would be a rather mediocre spectator sport. Like snooker. Or three-day eventing.

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