Dame Clare Moriarty, chief executive of Citizens Advice, emphasized the stark contrast between struggling households and the substantial profits amassed by network companies.

A recent report by Citizens Advice reveals that energy network owners in Great Britain have profited nearly £4 billion from household bills during the ongoing energy crisis.

Moriarty has called on network companies to return these excess profits to consumers through measures such as debt relief and targeted support for energy bills.

This regulatory oversight has resulted in households shouldering billions in profits while grappling with a cost of living crisis and mounting debts.

The report claims that these excess profits stem from Ofgem's miscalculation of network companies' costs over the past four years.

The report criticizes Ofgem's regulatory framework, which is effective from 2021 to 2028, for failing to prevent excessive profit-making during a period of significant financial hardship for consumers.

Specifically, Ofgem overestimated borrowing costs, allowing companies to recover up to £3.9 billion from consumers, even as many firms secured fixed-rate borrowing that protected them from rising interest rates.

In defense, the Energy Networks Association argued that the report oversimplifies the situation, overlooking the long-term investment plans exceeding £100 billion between 2021 and 2031, which are essential for economic growth and stability.

Ofgem responded by stating that the impact of these profits would only add a few pounds to consumer bills annually and emphasized that future price controls will be adjusted to curb excessive financial performance.