How energy firms could cut families’ bills by £175

FAMILIES are being shortchanged by almost £3billion a year because energy companies failed to pass on a huge fall in the prices they pay.

The wholesale cost of gas is down by 51 per cent since the end of 2013 and electricity by 33 per cent, according to website Energyhelpline.com.

However, only a tiny fraction of this has been passed on to families, leaving many pensioners worried about the cost of heat and light this winter as temperatures plummet.

Energyhelpline said energy giants have scope to cut every household bill by almost £175 a year – a total of nearly £3billion.

The major suppliers – British Gas, SSE, Npower, E.ON, EDF and Scottish Power – have introduced cheaper fixed-rate tariffs in the past year. But nearly two-thirds of households are signed up to standard variable rate tariffs, which have remained high.

Last year the Competition and Markets Authority accused the big suppliers of effectively overcharging millions of customers on these tariffs by £1.2billion over five years.

It has promised action, which could involve capping the standard tariffs while taking other measures to increase competition and encourage people to shop around.

Tens of thousands of sick and elderly people died last winter from illnesses such as flu made worse by the cold, while energy firms cashed in with sky-high tariffs.

UK Energy Secretary Amber Rudd has written to the suppliers several times calling on them to cut tariffs, but her appeals have been ignored as companies continue to impose

‘Millions are being

overcharged’