M&C Energy Group, the UK's largest independent energy consultancy, has called for double-digit energy price reductions as wholesale prices of gas and electricity continue to fall.
The company, which purchases in excess of £1bn of energy each year, believes it is unacceptable that suppliers are delaying passing on price cuts when customers are struggling to pay energy bills which have shot up by over 40%. The wholesale market has fallen sharply over the last four months and M&C Energy Group consider it indefensible that the big six energy companies are not cutting prices.

Sandra Birrell, Director, M&C Energy Group said. "The ‘big six' suppliers are out of excuses for not bringing down domestic prices immediately.

"Electricity wholesale prices peaked in late September (£90/MWh for year-ahead baseload). Now, four months later, prices have dropped by 46% (£48.50/MWh) which is lower than this time last year. Since the major energy companies raised their prices last summer, wholesale electricity has come down by almost half, yet consumers have yet to see the benefits. Gas is a similar story.

"Suppliers argue that they have to buy months ahead in the market, and so energy for this winter has already been bought at higher prices. However, when prices were rising at the start of 2008, most of the ‘big six' put through increases in January or February and again in mid-summer. Why now, when the opposite is true, do they not have room for manoeuvre?

"The winter period is crucial for customers' bills, and our concern is that despite steep wholesale price reductions, market falls may not be passed on until after the peak winter consumption.

"We are calling for energy companies to act immediately to announce cuts. Domestic customers should be expecting double-digit reductions in their electricity and gas bills to reflect the wholesale market."