Charities hit out at 'scandalous' utilities costs

While nearly all of the 'big six' energy suppliers have announced plans to slash their gas and electricity suppliers over the next few months, some consumers groups and charities view it as a matter of too little, too late.

According to Age Concern, following the recent cold snap felt across most parts of the UK, it's "scandalous" that most firms have declined to announce savings in line with the falls seen in the global oil markets, with even households taking the initiative and switching energy suppliers still running the risk of falling into fuel poverty before the winter is over.

Now, such an argument has been backed up by the latest Consumer Price Index (CPI), which shows that gas bills have risen by 50 per cent over the past year alone, while electricity bills have gone up by around 37 per cent over the same period.

What's more, while the rate of inflation has fallen from 4.1 per cent to 3.1 per cent, representing the biggest drop in more than a decade, multi-million pound utilities firms have yet to pass any such reductions on to their customers, in comparison to small traders such as restaurants and plumbers and builders who have passed on such cuts.

Millions, therefore, are still paying over-the-odds to heat and power their homes in addition to paying even more at the supermarket checkouts each week, with critics once again calling for the government to step in and call on the industry to give the most vulnerable members of society a much-needed break.

Gordon Lishman, director general at Age Concern, argued: "Given the recent cold snap, it's scandalous that energy firms aren't doing more for their poorest and most vulnerable older customers.

"Millions of households are living in fuel poverty, and those who should benefit from special rates are the least aware of discounted tariffs and how to apply for them."

He added, however, that the greatest portion of blame for the current predicament lies at the doors of both the government and the energy industry regulator, Ofgem, with Mr Lishman arguing that suppliers shouldn't have been laden with the burden of "addressing the needs of these poorest households".

To compound the misery of many households, broadband suppliers are now getting in on the act, claiming that the higher prices being charged for other utilities, namely gas and electricity, justify their decision to put their own rates up, making that new year's resolution of saving money by switching suppliers seem more important than ever.