Ofgem, the Government regulator for Electricity and Gas, has admitted that the latest round of energy price hikes is due to consumers becoming more efficient. Conservation initiatives such as low energy lightbulbs and improving home insulation, together with an increase in the number of domestic solar panels, have reduced consumption to the point where the overall natiowide demand for energy has fallen. As a result, some energy companies’ profit levels are beginning to lag behind quadruple the rate of inflation.
For many years, rising gas and electricity prices have been blamed on increasing global energy costs. Energy companies have often expressed their reluctance to pass these costs on to their customers before doing so anyway. But it now appears that the customers themselves are forcing the suppliers into this reportedly ‘regrettable’ action.
“We’re all in favour of energy efficiency and are pleased that many customers are saving money on their electricity bill having lagged their hot water cylinders,” explained an Ofgem spokesman. “But in order to allow the energy providers to reduce prices again, we recommend that consumers use that money wisely. Like buying a hot-tub for example.”