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Energy firms 'should reduce costs'

Energy companies in the UK have been urged to lower their gas and electricity prices.

It has emerged that, due to a mild winter throughout Europe, wholesale energy costs have dropped to their lowest since August 2011.

Compared to a year ago, prices have decreased by an estimated 43 per cent, with a unit of gas now valued at 48p, the Mirror reports.

Purchasing energy in advance for the next winter has also become cheaper at 60p a unit, while it was set at 70p this time last year.

Peter Atherton, an energy analyst at Liberum Capital, said: "If these prices stick, there should be scope for retail price reductions going into next winter."

Despite bills and profits for the Big Six constantly rising, certain firms have defended themselves by arguing that wholesale costs have left them with no choice.

SSE recently decided to temporarily freeze prices, but Niall Trimble, a consultant for the Energy Contract Company, stated this wasn't enough.

He said: "It's no longer a case of freezing prices, they should be reducing them."

Posted by Paul Taylor