Fair By Design reposted this
Citizens Advice has completed a review of the current set of price controls that apply to energy network companies (the ones who supply pipes and cables). Despite improvements in many aspects of the price control, network companies are continuing to make significant profits. The analysis shows that the majority of the excess returns to network companies since 2021 are a windfall worth around £4 billion. That is £4 billion of profit that is not associated with improved consumer outcomes. This windfall has come about due to a flaw in the way the current price control accounts for inflation, meaning that the spike in inflation has allowed companies to recover costs for borrowing that significantly exceeded the actual cost of borrowing Energy network companies can and should do more to help struggling households.
This is something a bit different from us at Citizens Advice: a look at some people who've done rather well out of the cost of living crisis. In the last few years, high inflation has dropped a windfall of nearly £4bn into the laps of the energy network companies. At the time same time, it has wreaked havoc for households, leaving millions in debt to their energy supplier. As energy network companies have been the inadvertent beneficiaries of the cost of living crisis, we believe they have an obligation to support those still suffering the worst effects of it.