As many people live in fear of the next utility bill slamming through the letterbox, gas and electricity suppliers are counting their money.

The Daily Express lists the 2012 profits of the Big 6 utility companies as:

• Scottish Power: profits £1.9 billion – prices up seven per cent.
• Centrica (British Gas): profits £2.7 billion – prices up six per cent.
• Npower: profits £131 million – prices up 8.8 per cent.
• EDF: profits £1.7 billion – prices up 10.8 per cent.
• E.On: profits £2.6 billion – prices up nine per cent.
• Scottish & Southern: profits £800 million (estimated) – prices up nine per cent.

And now, Ofgem, the watchdog in charge of regulating the actions of the UK’s energy companies and market, has told the Sunday Times that some firms will more than triple their profits next year.

The average gas and electricity bill will rise from £1,310 in 2012 to £1,420 in 2013. This means that families which are already on the breadline will be paying an average of £110 a year more for their gas and electricity over the coming 12 months. Yet during this time, the wholesale cost of energy to the suppliers has actually fallen.

Energy companies argued that the figures  are merely a snapshot estimate of profitability over the next year. British Gas stated that the watchdog had not taken into account the discounted tariffs it gives to customers or actual wholesale costs, but Tim Yeo, Conservative chairman of the energy and climate change committee, said it would investigate the Ofgem figures.

Ann Robinson, director of consumer policy at the price comparison website uSwitch, recently explained that people are going to extreme lengths to keep their energy bills to an absolute minimum, with seven out of ten of us actually switching off the heating and putting up with the cold at some point this winter. Furthermore, she said that over a third of Brits believe that their decisions to avoid the high costs of gas and electricity by switching the heat off have had a detrimentally effect on their quality of life and also their health.

About the Author

Jonathan Matthews, an expert with more than ten years’ experience helping people get out of debt, said that the high cost of living in the UK is changing the nature of money issues in the country.

“Debt is no longer always the result of an extravagant lifestyle or poorly-judged investments.”

“Hard-pressed families are finding that previously simple tasks such as putting food on the table for their children or keeping them warm during the depths of winter are now having a serious impact on their monthly finances,” he said.

Mr Matthews added that if bills are to rise even higher, the number of debt issues and amount of families in fuel poverty is sure to follow suit.