01/10/2009 - Gas suppliers are profiting at their customer`s expense

Wholesale gas prices have plunged but this is not being reflected in the price consumers pay.

Gas suppliers are enjoying their largest profit margins for more than a decade, though they concede they needed to make up for unsustainably low profits of the past few years.

Gas prices have dropped from more than £1 per therm in summer 2008 to only 35p today on the back of increased supply and reduced demand.

Suppliers do not always benefit from the full extent of the price fall though as many of them purchased forward earlier in the year when prices were higher.






Source: Financial Times

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