Ofgem’s latest 12-month forecast for margins made by big six energy suppliers shows only a slight drop on July’s estimate.
The energy watchdog reckons a typical large energy supplier could make a pre-tax margin of over £102 or 8 per cent in the coming year, a decrease of £4 on last month’s forecast.
The latest supply market indicators (SMI) show that the average dual fuel bill from August 2014 to August 2015 will be £1,330, while the portion of the dual fuel bill made up by suppliers’ wholesale costs is £598.
Network, environmental and social costs make up £386 of the bill, and Ofgem’s estimate of supplier operating costs for the next 12 months is £174.
Since 2009 Ofgem has required the six largest energy suppliers to produce annual statements showing actual costs, revenues and profits for their generation and supply businesses.