Brits shivered through winter as energy companies cashed in

As energy companies such as British Gas announce record profits, new research from comparison site Gocompare.com reveals the financial strain caused by the coldest winter in 30 years coupled with stubbornly high energy costs.

Despite wholesale gas prices falling substantially since January 2009 energy providers have yet to pass on to customers the full benefit of their decreased running costs. In fact, according to Ofgem, energy companies have increased their average net margin for supplying gas and electricity to the average customer by 40% between November and February. Just at the time when temperatures plunged and Brits needed to use energy most.

The result of this profiteering is that one quarter (25%) of Brits were cold this winter because of trying to keep their heating bill down and 1 in 5 (21%) Brits say they will struggle to pay this winter's fuel bill. 15% of consumers had to make cutbacks in other areas to keep their heating on.

However, although energy companies have cashed in while the nation shivered, a significant number of consumers have made it very easy for energy companies to maximise their profits.

1 in 5 (20%) consumers admitted to NEVER having switched their energy provider and could be missing out on a collective saving of over £1.4 billion a year.

Of those who have never switched their energy provider 43% of them think switching would just be too much hassle and more than 1 in 5 (22%)  are worried that switching could lead to having their gas or electricity supply cut off during the change over. 15% admit that they just don't know how to go about switching.

On the plus side, with comparison services now making it easier than ever to compare  energy deals and switch to a cheaper tariff, most consumers are switching on to switching. 60% of consumers compare their energy deal once a year and nearly 1 in 5 (18%) of consumers said their most recent winter bill had convinced them to shop around.

Mark Greening, head of utilities at Gocompare.com, said: "It's shocking that a quarter of British consumers didn't keep their homes warm this winter because of worries about their heating bill. Energy providers announcing record profits should hang their heads in shame for taking advantage of the coldest weather in 30 years to boost their bottom line when so many people either couldn't afford to heat their homes properly or will now struggle to pay their bills.

"Energy companies could have passed on the benefit of the substantial fall in wholesale gas prices before the winter but they chose not to. The fact that some energy companies are only now starting to reduce their tariffs, just as the weather warms up, will be very cold comfort to their customers who shivered through the winter just trying to make ends meet.

"The only good news from this research is that it seems consumers are switching on to the benefits of regularly comparing their energy tariffs and switching providers if they can get a better deal. Gocompare customers save an average of £285.37 per year by switching energy providers so maybe the 20% of consumers who have never switched will think again when their winter heating bill hits the doormat."