The boss of energy supplier npower said today his company makes “no hidden profits”.
The company brought out a new guide to the costs of energy companies today suggesting suppliers control less than 20% of an energy bill.
Called ‘Energy Explained: Inside the Cost of Energy’, the booklet sets out how power stations are financed, how and why energy is traded and how it is priced for consumers.
Paul Massara, RWE npower CEO said “The most common number associated with energy in the UK is six – the ‘Big Six’ suppliers. But this report shows how misleading this is. It’s time we looked at the 80:20 rule in energy too – the 80+ organisations that trade on our energy markets, from major oil companies and international banks to small traders, and more than 20 generators who produce the power we all buy.
“In total there are over 140 companies involved in the production, generation, trading, delivery and supply of energy in the UK, all of whom influence the price we pay as consumers for the energy we all use.”
He tried to shift focus onto the UK’s “old and draughty housing” which is stopping the country from having “some of the lowest” energy bills.
Mr Massara said: “The actual unit price of energy in the UK is one of the lowest in Europe – but bills are high because British houses waste so much energy.”
The report states at least 16 different policy and regulatory costs will have a direct impact on energy bills by 2020.
However regulator Ofgem disagrees with npower’s prediction a rise in network operating costs will spell bill rises.