Are the foreign owned energy companies charging Britain more for its energy and cutting prices in their own countries?

It’s long been suspected by consumer groups that the U.K. has been singled out as a place of maximum returns for overseas companies providing energy. Throughout the last year the U.K. has faced the highest energy prices, whilst its mainland European neighbours, notably France, Germany and Spain, have fallen.

Now people are pointing out that it can be no coincidence that the major energy companies are owned by companies in France, Germany and Spain. And the accusation is that these companies are helping their own countries, at the expense of the U.K.

Figures from the latest inflation study from the Organisation for Economic Co-Operation and Development (OECD) show that the U.K. suffered the worst inflation for the year to December 2008, at 12.1%. Next in the table came Belgium at only 3.2%. Still in positive territory were Sweden and Italy with 2.3% and 1.3% respectively, but the first drop comes with Germany’s dip of minus 0.8%, Ireland’s at minus 3.3% and Netherlands at minus 3.4%. France showed a healthy minus 6.5% and Spain an even better fall of minus 7.2%. And the biggest drop of all, Switzerland at minus 10.3%.

The consumer groups bemoan the fact that since last summer gas and electricity gas prices have dramatically collapsed, by as much as 40%, many of the gains have yet to be passed on to U.K consumers.

What’s causing the most resentment is that whereas Centrica of Britain, which owns British Gas, has recently announced a ten per cent cut and another U.K. owned energy concern Scottish and Southern has promised cuts, their European counterparts have, up to the time of writing, failed to do the same.

There has been no talk of price cuts for the U.K German owned nPower and E.on, nor from French owned EDF, or Spanish owned Scottish Power.

In their defence, the overseas energy companies claim their detractors are not comparing like for like and that the U.K. started from a lower cost base than its mainland neighbours. Furthermore, state The Energy Retail Association, the U.K. has the most competitive energy prices in the world and that the inflation figures in the OECD findings show just inflation, and not the actual energy prices.

Whatever the truth, as the economic squeeze gets tighter, this is going to remain a contentious issue.

Guest Article by Neil Camp

Related posts:

1. Britain Pays what Europe Says!
2. Agincourt the Cry, Too Damn Cold the Answer
3. Will The Russian Bear Halt UK Gas Supplies?
4. Ofgem Tell Energy Companies to Come Clean
5. The Cheap Gas Price War for 2009