This week there was a bit of a hoo haa about the real Big Six profits. The Sun newspaper got hold of a report written by respected accountancy firm PriceWaterhouseCoopers for the Big Six’s trade body Energy UK.

That led to some strong headlines.

We’ve actually got hold of a copy of the leaked report so you can take a look for yourself. Download it here.

But to save you a bit of time we’ll do a little summary. PWC’s report worked out the costs for a Big Six company to supply energy to a customer. Annex 2 on page 17 is the key bit. For 2016/17 it found:

Wholesale costs: £316

Operational costs: £158

Environmental and social policy costs: £111

Network costs: £259

That totals: £844

We know the average customer on a standard Big Six deal pays £1,063 if they pay by direct debit and £1,142 if they pay by receipt of bill. That’s a lot more than £844!

So the Big Six are making over £200 profit on each of these customers. Oh and 70% of customers are on these standard Big Six deals.

We’ve done two little tables below so you can check out the situation for each of the Big Six. Npower is the worst!

Table showing the profits of Big Six’s standard variable tariffs paying by direct debit

CompanyStandard PriceStandard Price less VATSupply and operating costs according to PWCBig Six ProfitsBig Six Profits margin
British Gas£1,044 £994£844£15014%
EDF£1,069 £1,018 £844£17416%
E.on£1,047 £997£844£15315%
Npower£1,077 £1,026 £844£18217%
Scottish Power£1,070 £1,019 £844£17516%
SSE£1,071 £1,020 £844£17616%
Average£1,063 £1,012 £844£16816%

Table showing the profits of Big Six’s standard variable tariffs paying by receipt of bill

CompanyStandard PriceStandard Price less VATSupply and operating costs according to PWCBig Six ProfitsBig Six Profits margin
British Gas£1,102 £1,050 £844£20620%
EDF£1,139 £1,085 £844£24122%
E.on£1,127 £1,073 £844£22921%
Npower£1,172 £1,116 £844£27224%
Scottish Power£1,161 £1,106 £844£26224%
SSE£1,148 £1,093 £844£24923%
Average£1,142 £1,087 £844£24322%

Everyone knows that if you don’t switch you are being ripped off but these figures truly show the real extent of Big Six profits. Energy UK and the Big Six claim this analysis – even though they commissioned it – is draft and shouldn’t be taken seriously.

But why won’t they tell us what their real profit margin is on the vast majority of their customers? Because it’s huge, as these figures reveal.
The conclusion to all of this?

SWITCH! Do it now. Right now. CLICK BELOW

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