Martin Lewis has explained who is raking in "big money" during the energy crisis - and it isn't usually the companies that we pay our bills to.
It comes as households are warned they could see their fuel bills cost more than their monthly mortgage payments next year as energy prices skyrocket. Many people are set to see their disposable incomes shrink significantly in the new year with some seeing the cost of their utility bills catching up with, or overtaking, their mortgage.
Energy prices could spike at as much as £6,823 per year for the average household from next April, according to the latest forecast by energy consultancy Auxilion, which amounts to about £569 a month. In comparison, the average bill in October 2021 was £1,400 a year.
The soaring bills have seen an increased focus on the profits being made by some firms. Addressing the issue on Twitter, Money Saving Expert founder Martin Lewis said: "Many asking me why does Ofgem allow firms to make such big profits?
"To be fair, it regulates retail energy firms/bits of firms. Those who sell energy direct to consumers.
"They're not making huge profits right now (hence why many went bust). The BIG money is made by the oil and gas producers (some of whom are the same firms).
"However that isn't regulated by Ofgem - even if it regulates the retail wing of the same company. Therefore the decision on what's legit there is in the government's bag not Ofgem's."
BP recently reported its biggest quarterly profit for 14 years. The energy giant saw underlying profits hit £6.9bn between April and June - more than triple the amount during same period last year, reports the BBC.
British Gas owner Centrica and Shell have also posted huge profits due to rising energy prices. Centrica's half-year profits were five times higher than a year earlier - rising to £1.34bn from £262m a year earlier - for the six months ending in June. Meanwhile, Shell reported record profits of $11.5bn (£9bn) for the April-to-June period.
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