Energy Secretary Amber Rudd has spoken and written to the "big six"
suppliers to question them about whether prices are reflecting
companies' costs.
One consumer group said the firms had "run out of excuses" for failing to cut prices further.
But the energy companies have said they are operating in a highly competitive market.
'Regain trust'
"In
light of the greater regulatory stability we are providing and
continued stability in wholesale gas prices, I believe that energy
suppliers should be seeking to regain the trust of consumers by
reflecting this in their pricing decisions," Ms Rudd said in a letter
seen by the BBC.
The latest analysis by regulator Ofgem estimated
that firms could increase their profit margins to up to £118 per
customer on an estimated annual dual-fuel deal this year.
It added that wholesale gas and electricity costs were £80 lower than their estimated level a year ago.
The possibility of a price freeze, proposed by the Labour Party, has also been extinguished by the General Election result.
Last
month, energy company SSE - one of the big six - reported a 40% rise in
profits from its retail arm, despite losing more than 500,000 customers
over a year.
A spokesperson for SSE said: "Two price cuts in 13
months and an unrivalled price freeze until July 2016 proves the
importance SSE places on giving customers lower prices for longer.
Providing this peace of mind for customers requires a long-term approach
to pricing; however, as ever, if we can cut them again, we will."
All
the big six firms - SSE, British Gas, Scottish Power, Npower, EDF, and
E.On - cut gas prices earlier in the year, but campaigners say this
failed to reflect continuing falls in wholesale costs.
Richard Lloyd, executive director of consumer group Which?, said:
"Energy firms have totally run out of excuses for not cutting our bills.
"It is good that ministers are acting but we now need to see
suppliers do the right thing, and fast. If they don't play ball it will
add weight to the case for the competition authority to step in and
force the energy firms to make bills fair."
The Competition and Markets Authority (CMA) has been investigating the energy market since last summer.
It
has already reported that gas and electricity customers could have cut
their bills by moving their custom to new products or different
suppliers.
From 2012 to 2014, more than 95% of dual-fuel customers
of the big firms would have have saved money by switching tariffs or
suppliers, it said.
The savings they missed ranged from £158 to £234 a year per customer, the CMA said.
Its full findings are expected soon.
A
spokesman for Energy UK, which represents the major energy firms, said:
"More companies are entering the market and by shopping around
customers can find deals that are both cheaper than this time last year
and which match individual circumstances.
"Our members will be
replying to the Secretary of State in due course and the industry as a
whole is keen to work constructively with the new government to ensure
energy security at a price everyone can afford."
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