Energy suppliers ignored a private request from the Tories to cut prices after the election.
Only two of the big six suppliers bothered to reply to a letter sent by the energy secretary in May suggesting that they lower bills because the threat of Ed Miliband’s price freeze had been lifted by a Conservative election victory. Since then only British Gas has cut prices, by just 5 per cent and only on gas.
Campaigners said that the snub was symptomatic of an arrogant industry too used to getting its own way. “It is absolutely disgraceful,” Ann Robinson, of uSwitch, the energy comparison website, said. “Not only is it very rude, but it also shows a lack of respect, trust and understanding.
“The industry is taking far too much for granted. Wholesale prices are the lowest they have been for five years and a competition inquiry concluded they are overcharging. Yet despite this, suppliers still have 70 per cent of customers on expensive standard tariffs.”
Amber Rudd, the energy secretary, wrote to the chief executives of each of the big six suppliers — British Gas, EDF Energy, E.ON, npower, Scottish Power and SSE. Each letter, which The Times obtained using a freedom of information request, is different but raises the same points.
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In the letter to Tony Cocker of E.ON, Ms Rudd wrote: “One area I particularly want to explore with you is how the removal of the threat of a price freeze will affect E.ON’s pricing decisions.
“My expectation is that consumers should be seeing the benefit in their bills of both the greater stability in the regulatory framework we are providing and the current low level of gas wholesale prices.”
Dr Cocker did not reply, and since then E.ON has not lowered prices. Only Scottish Power and SSE replied.
E.ON insisted last night that it did send a reply but the Department of Energy said it did not receive it. Npower said that it did not reply because it had a telephone call with Ms Rudd the following day.
In July, the competition watchdog said that the big six suppliers had overcharged customers by £6 billion over the past five years, the equivalent of about £300 per household. It recommended a price cap that would cut bills for almost 20 million homes.
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This week Ms Rudd admitted her frustration at the lack of progress. She told The Times: “I will continue to press suppliers to deliver on the energy cuts I asked for. It’s not over yet. This is an ongoing conversation.”
Lawrence Slade, of Energy UK, which represents the big six suppliers, said: “Companies keep in contact with the government but decisions about prices are a matter for individual suppliers. Some bought their energy many months in advance and it takes time for cuts to work through to bills.”