The postcode lottery in energy profits - a regional update of Energy Consumers’ Missing Billions
Last year we found that energy networks - the monopoly companies that run the pipes and wires that take energy to our homes - are making excessive profits of £7.5bn, with consumers footing the bill. Read our full analysis update here. This analysis shows the regional disparities in the unjustified profits being made by electricity distribution firms and the costs being borne by consumers.
Since we published our last report, some companies have recognised they are making unjustified profits and given money back to consumers. Following our call for network companies to return money to consumers through a rebate on their bills, SGN have returned £145m and Scottish and Southern Electricity Networks have returned £65.1m which will lead to a direct reduction in bills.These are welcome and important steps.
Other companies have also taken steps to reduce pressure on consumers’ bills. National Grid announced that they would be deferring £590m of their investment allowance until the next price agreement, £123m of which would have been paid by consumers in the current price agreement. Cadent has also reduced their planned spending by £54m.
But more action needs to be taken. While consumers shouldn’t be paying any excessive profits, seven companies have taken no action to reduce consumers’ bills at all, including all of the electricity distribution companies.