While British families are reeling from bills rocketing more than 20%, customers in the energy giants’ home nations have seen rises nearer half that figure.
The massive difference has led to concern that European firms are happy to batter their UK customers to protect those at home.
Four of the Big Six energy firms – Scottish Power, EDF Energy, E.ON and npower – are in foreign hands.
A Mirror investigation has found their owners have passed on much smaller price increases this year in their home countries. In many cases the difference is shockingly stark.
French-owned EDF Energy has whacked-up gas prices by a hefty 22.9% and electricity by 12.3% in the UK since the start of the year.
But in France, gas prices went up 15% and electricity by just 3%. At npower, electricity bills are up by 12.7% and gas by 21.6% since January. Yet customers of the firm’s German owners, RWE, have had to cope with just one increase of 11% for gas on January 1.
To make matters worse, RWE promised not to increase prices again in Germany for the rest of 2011, while allowing its UK arm to squeeze customers here.
Rival German company E.ON has also done its best to raise bills by as little as possible at home, with electricity up by an average of 6.7% and gas by around 9.1%.
This compares with a combined jump of 21.4% in electricity for E.ON UK customers and a 21.6% hike for gas.
The final energy firm in foreign ownership is Scottish Power, which has raised electricity bills by 10% and gas by 19% since January. In Spain, customers of its owner Iberdrola are only paying extra for electricity, up 12%.
The massive difference has led to concern that European firms are happy to batter their UK customers to protect those at home.
Four of the Big Six energy firms – Scottish Power, EDF Energy, E.ON and npower – are in foreign hands.
A Mirror investigation has found their owners have passed on much smaller price increases this year in their home countries. In many cases the difference is shockingly stark.
French-owned EDF Energy has whacked-up gas prices by a hefty 22.9% and electricity by 12.3% in the UK since the start of the year.
But in France, gas prices went up 15% and electricity by just 3%. At npower, electricity bills are up by 12.7% and gas by 21.6% since January. Yet customers of the firm’s German owners, RWE, have had to cope with just one increase of 11% for gas on January 1.
To make matters worse, RWE promised not to increase prices again in Germany for the rest of 2011, while allowing its UK arm to squeeze customers here.
Rival German company E.ON has also done its best to raise bills by as little as possible at home, with electricity up by an average of 6.7% and gas by around 9.1%.
This compares with a combined jump of 21.4% in electricity for E.ON UK customers and a 21.6% hike for gas.
The final energy firm in foreign ownership is Scottish Power, which has raised electricity bills by 10% and gas by 19% since January. In Spain, customers of its owner Iberdrola are only paying extra for electricity, up 12%.
While the UK’s other two major suppliers – British Gas and Scottish & Southern Energy – have increased bills in line with their rivals, it is easier to scrutinse their finances and hold management to account.
The big difference in prices has also led to speculation that overseas energy firms could be using the extra money made here to subsidise customers at home.
Deregulation of the energy market in Europe was supposed to break the stranglehold of the national giants and allow competition.
But while the UK embraced the shake-up, other European countries have largely ignored the changes.
British Gas owner Centrica has long complained that, while deregulation has allowed European energy giants to cherry-pick suppliers here, it is effectively prevented from doing the same on the Continent. The challenge is made worse by state ownership of chunks of the firms, particularly EDF.
Dr Robert Gross, director of the Centre for Energy Policy at Imperial College in London, said: “It is questionable whether Britain has benefited from this takeover of our domestic suppliers.”
He added: “Until recently the UK was seen as a safe haven and attractive for investors who could make good profits here.”
Adam Scorer, of the watchdog Consumer Focus, said: “Foreign ownership shouldn’t make a difference.”
Mark Todd, of the website Energyhelpline.com, said: “Governments abroad are more willing to restrict price rises. In Spain, the Government can veto any rise.
“If you applied the Spanish model here, it would be like the suppliers having to ask David Cameron for permission to raise prices rather than, like now, him having to beg them not to raise them.”
MISLEADING
The criticism comes after Prime Minister Mr Cameron held an emergency summit at Number 10 on Monday with bosses of the Big Six and energy regulator Ofgem.
Energy Secretary Chris Huhne said it was the start of government plans to make the energy market more “trusted, simple and transparent for customers”.
Suppliers were condemned after Ofgem figures last week showed they were making £125 a year profit from the average customer – up 733% from earlier in the summer.
The massive rise follows the latest round of price rises which has taken the average family’s bill to more than £1,300 for gas and electricity.
Suppliers argued the figures were misleading and said higher wholesale costs would eat into their profits.
To find the best energy deal for your home, use Mirror Money's free comparison site.
How are the fuel hikes hitting you? Call our Power Hotline on 0207 293 3186 from 10am-6pm today (Thursday 20th October)
The big difference in prices has also led to speculation that overseas energy firms could be using the extra money made here to subsidise customers at home.
Deregulation of the energy market in Europe was supposed to break the stranglehold of the national giants and allow competition.
But while the UK embraced the shake-up, other European countries have largely ignored the changes.
British Gas owner Centrica has long complained that, while deregulation has allowed European energy giants to cherry-pick suppliers here, it is effectively prevented from doing the same on the Continent. The challenge is made worse by state ownership of chunks of the firms, particularly EDF.
Dr Robert Gross, director of the Centre for Energy Policy at Imperial College in London, said: “It is questionable whether Britain has benefited from this takeover of our domestic suppliers.”
He added: “Until recently the UK was seen as a safe haven and attractive for investors who could make good profits here.”
Adam Scorer, of the watchdog Consumer Focus, said: “Foreign ownership shouldn’t make a difference.”
Mark Todd, of the website Energyhelpline.com, said: “Governments abroad are more willing to restrict price rises. In Spain, the Government can veto any rise.
“If you applied the Spanish model here, it would be like the suppliers having to ask David Cameron for permission to raise prices rather than, like now, him having to beg them not to raise them.”
MISLEADING
The criticism comes after Prime Minister Mr Cameron held an emergency summit at Number 10 on Monday with bosses of the Big Six and energy regulator Ofgem.
Energy Secretary Chris Huhne said it was the start of government plans to make the energy market more “trusted, simple and transparent for customers”.
Suppliers were condemned after Ofgem figures last week showed they were making £125 a year profit from the average customer – up 733% from earlier in the summer.
The massive rise follows the latest round of price rises which has taken the average family’s bill to more than £1,300 for gas and electricity.
Suppliers argued the figures were misleading and said higher wholesale costs would eat into their profits.
To find the best energy deal for your home, use Mirror Money's free comparison site.
How are the fuel hikes hitting you? Call our Power Hotline on 0207 293 3186 from 10am-6pm today (Thursday 20th October)
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