Energy companies not profiteering, says ACM

Energy prices from three major suppliers, Budget Thuis, Greenchoice and ENGIE are not unreasonable, according to a report from the Authority for Consumers & Markets (ACM).

The body researched these firms’ prices in the first quarter of 2023, and found their profits were not higher than in previous years. In 2022, their net gain – after the cost of delivering energy – was between 0% and 5% of turnover.

UnitedConsumers, part of ENGIE, made more than this in 2022, which the ACM said was ‘not unreasonable’ and part of a strategy that delivers more profit in some years than in others. The ACM previously researched the tariffs of Eneco, Essent and Vattenfall and said they were ‘not unreasonable’.

Martijn Snoep, head of the ACM board, said in a news release: ‘The suspicions that many people had that energy suppliers would misuse the high prices to ratchet up their own prices has proved to be incorrect. Our research into the six largest energy suppliers showed that after deducting all costs, they are not making abnormal profits in delivering energy to consumers.’

However, he warned that the ACM would be keeping a ‘sharp’ eye on whether the energy companies pass on the market price decreases to consumers.

The ACM’s most recent monthly consumer energy monitor suggests that new variable contracts for gas and electricity are asking 12% less and 20 suppliers have prices under the ‘price platform’ the government has introduced to protect consumers from unaffordable bills. Fixed contracts have however gone up slightly and there is a lot of difference between suppliers.