Iceland accuses energy firms of profiteering

Iceland has accused gas and electricity companies of profiteering and discrimination.

The supermarket is among several businesses that have flagged concerns to the energy regulator about the behaviour of its suppliers, The Telegraph reported.

The complaints were submitted to Ofgem in relation to its investigation into “poor conduct”, which launched earlier this year following increased scrutiny after the energy crisis sent bills soaring.

Iceland, which temporarily paused new store openings last year after its energy bills rose by £20m, said: “Suppliers are attempting to remove every element of risk from their business by passing it directly onto their customers.


Subscribe to Retail Gazette for free

Sign up here to get the latest news straight into your inbox each morning 


“The customers then have no option but to pass these costs on where they can or absorb them.

“The first option fuels the cost of living crisis and the second could see many businesses fail.”

The supermarket said suppliers were charging exorbitant fees to secure energy contracts as well as unfairly holding on to security deposits worth thousands of pounds.

It added: “Having chased this with the supplier every day for the past 2 months, there is still no confirmation of when this money will be returned.”

Ofgem said it has since sought to address concerns by “introducing better complaint handling between suppliers and businesses”.

Click here to sign up to Retail Gazette‘s free daily email newsletter

GroceryNews

Filters

RELATED STORIES

Menu

Close popup