Energy row reignites after Ofgem figures

Ofgem’s claims that profit margins at the big six energy firms are likely to double over the next year drew an angry response from supplier’s organisation Energy UK. Economising on energy use is the subject of a free, one-hour webinar​ to be staged on at 11am GMT on Thursday September 18. See end of this article for more details.

Energy UK chief executive Angela Knight said “the huge gap” ​between the regulator’s estimates of what the suppliers earn from selling energy and the actual figures, raises big questions about Ofgem’s Supply Market Indicators (SMIs).

“It cannot be right to publish numbers and estimates which imply profits which turn out not to exist,”​ said Knight. “Customers are concerned enough about their bills. What we need is an honest discussion on energy, what it costs and how it is paid for. Using estimates that are as inaccurate as these, and which often result in misconceptions and misunderstandings, gets us nowhere.”​

‘Misconceptions and misunderstandings’​

Ofgem estimated that the pre-tax margin would increase to £120 per customer at the start of last year. But analysis revealed energy suppliers’ pre-tax and pre–interest profits fell to 4% in 2013 – an average pre-tax profit of £1 a week for electricity and gas for each customer, said the suppliers’ organisation.

“At a time when massive investment is required to change how the UK generates electricity to meet the UK’s climate change targets companies have to make a fair profit and customers need to know what they are paying for,”​ said Knight.

“We all need clear explanations and this should include common definitions of the terms we use particularly when talking about profit, that is left after all costs, investment and taxes which have been paid. The SMIs are not reliable, are being used in a way that is misleading and must be reformed.”​

Free, one-hour online seminar​

Meanwhile, the Food Manufacture Group is staging a free, one-hour online seminar on the new Energy Savings Opportunity Scheme (ESOS) at 11am GMT on Thursday September 18.

Staged in partnership with energy efficiency specialist JRP Solutions, the webinar will provide the latest advice on how to comply with the new mandatory legislation and how to make savings for your food and drink manufacturing business.

Taking part in the webinar will be respresentatives from government, the Food and Drink Federation and JRP Solutions. See speaker list at the end of this article.

The format will be short presentations from each speaker followed by a question and answer session. Online registration​ is straightforward and you can submit a question to our expert panel, in advance, by emailing Michael.stones@wrbm.com.

Energy webinar speakers​

• Martin Adams, ESOS team leader, Energy Efficiency Deployment Office

• Steve Reeson, FDF head of climate change and energy policy

• Food and drink manufacturer

• Jes Rutter, md JRP Solutions

Reserve your free place here.​