Energy Firms Surpass £4bn in Excess Profits Amid Cost-of-Living Crisis

A recent analysis by Citizens Advice reveals that energy network companies in Great Britain have amassed nearly £4 billion in excess profits over the past four years, exacerbating the burden on households during the cost of living crisis. The report criticizes the regulator Ofgem for overestimating borrowing costs, allowing these monopoly firms to profit at consumers' expense, particularly as many families struggle with soaring energy bills. Citizens Advice has noted that over five million households are now in debt to their energy suppliers due to inflated costs. The charity is calling on these companies to use their excess profits to aid struggling consumers. Dame Clare Moriarty, chief executive of Citizens Advice, highlighted that this situation reflects a significant failure on Ofgem's part to regulate effectively. The analysis underscores broader concerns about the energy sector's profitability amid ongoing economic challenges for British families.