ENERGY giants are in line for windfall profits of £1billion a year — funded by taxpayers.
The Government has agreed to prop up suppliers as they invest £110billion to upgrade ageing power stations.
But ministers have failed to secure a guarantee that the extra cash will go to cut gas and electricity costs.
Official estimates last November had foreseen a £19billion loss for firms upgrading under the Energy Bill — but they now predict a £16billion profit by 2049.
Labour warned the move would enrage struggling families hit by the cold snap after E.ON became the latest giant to hike prices.The average dual-fuel bill for its four million customers will go up to £1,370, a rise of £110 a year.
It was the last Big Six supplier to up prices despite soaring profits, after British Gas, Scottish Power, EDF Energy, SSE and npower.
MPs will debate the Energy Bill’s plan to prop up prices this week. Shadow energy minister Tom Greatrex said: “The Government should be helping people, not giving the Big Six windfall profits.”
Article written by David Wooding, associate political editor at The Sun, and sub edited by myself.
Originally published in The Sun on Sunday January 20 2013.