Energy firms made £7bn from loyal customers

THE ‘big six’ energy firms have made more than £7billion over five years by overcharging loyal customers, research suggests.

The largest gas and electricity companies offer discounted rates to persuade families to switch from other suppliers – but then put up their charges a year or two later.

It means that if they fail to switch suppliers regularly, millions of customers of British Gas, SSE, E.ON, Npower, EDF and Scottish Power pay more than they need to.

Analysis of official figures found families that stuck with a provider from the top six firms for at least five years paid £853 on average more than necessary, or £14 a month.

The extra charges have let these firms amass a windfall of £7.3billion over the past five years, according to figures from the regulator Ofgem.

Hayden Wood, of the energy firm Bulb, which did the analysis, said: ‘The “big six” need to show they’re putting customers first instead of profits.

‘Loyalty to a brand is often rewarded, yet households who put their trust for years in an energy company are being forced to subsidise others who switch every 12 months.’