Energy firm urged to cut prices

Debt-laden consumers could be among those who would benefit from energy suppliers lowering their prices after turning in large profits.

One such firm is E.ON, whose 30 per cent year-on-year rise in earnings for the first six months of the year has prompted a call from price comparison site uSwitch  to allow its customers to "benefit" from falling wholesale costs.

Director of consumer policy at the site Ann Robinson said the company's promise to freeze its prices over the winter was not enough, stating: "With over eight in ten households having cut down or rationed their energy use last winter because of cost, any reduction would be welcomed."

Consumers struggling to pay off debt may be among those most likely to cut back on heating in winter, enduring the cold to make ends meet.

The E.ON news also prompted head of energy regulation at Consumer Focus Richard Hall to argue many people will question whether the benefits of falling wholesale energy prices are "fed through fairly and fully" to the public.

By James Francis