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CMA reveals Big 6 Profit Jump

The latest revelation from the Competition and Markets Authority (CMA) investigation has laid bare the growth in the profit performance of the Big 6 energy suppliers between 2007 and 2013.

Businesses making profit is not bad, whatever the populist messaging of modern Britain might lead one to think but the sheer escalation of the earning of the UKs largest energy suppliers is breathtaking in its achievement.

Over the periods the CMA found that profit levels increased ten fold in just six years, escalating from £110m in 2007 to over £1.1bn in 2011.

Again to reiterate that profit per se is not bad, nevertheless the CMA highlighted that the apathy of ‘sticky customers’ “who do not shop around for their energy deals” were driving the escalating earning levels.

Indeed the CMA found that the revenues delivered from standard variable tariffs were 12% higher for electricity and 13% higher for gas above other rates offered.

Labour energy minister Tom Greatrex reacted to the news claiming:

“This is yet more evidence that energy companies are increasing their profits on the back of spiralling bills for households and businesses.

“The next Labour government will freeze energy prices until 2017, so that bills can only fall and not rise, and give the regulator the power to cut bills in time for winter”

Whether that comes to fruition depends on the outcome of May’s general election and not a little of the acquiescence of the industry however one thing is clear greed is not good in 2015 political debate.