Friday, January 04, 2008

Millions face fuel bill misery with increases of 17 % on gas and electricity

Gas and electricity bills could soar by up to 17 per cent just as millions are relying on their heating over the winter.

The increases could add more than £130 to annual power bills and push 400,000 Britons into "fuel poverty".

The first of the "Big Six" power companies to unveil price rises will be nPower.

The German-owned firm, which has more than six million customers, will announce today that its tariffs are about to go up by around 17 per cent.

City sources say the biggest supplier, British Gas, which has 15.8million customers, is preparing to push up prices by around 10 per cent.

Other power firms are expected to follow suit over the next few days.
The industry will blame rising wholesale gas prices for the increases. The price of gas is tied to oil, which broke through the $100-a-barrel mark this week.

But that will not console homeowners already struggling to cope with high mortgage costs, rising food bills and the soaring cost of petrol and council tax.
It will come as a particular blow to the millions of poorer Britons, including pensioners, who must choose between heating and eating during the winter.
The increases, which are likely to come into effect in February, could push annual power bills past £1,000.
The consumer body Energywatch criticised the industry for putting up prices when the cost of wholesale gas and electricity goes up, yet being slow to pass on any falls.

Chief executive Allan Asher said: "Consumers will be fearing the worst as companies prepare to raise bills. It is a real kick in the guts.
"The biggest danger to prices is the absence of meaningful competition among suppliers to keep bills down."

The British power industry is dominated by British Gas, RWE nPower, Eon, EDF Energy, Scottish and Southern Energy, and Scottish Power.

Historically, firms have waited for British Gas to alter prices before announcing their own changes. However, this time nPower will be the first.
An industry insider said: "nPower has been itching to increase its tariffs for some months.
"There is a suspicion in the industry that nPower made a mistake on its buying strategy and so is paying above the odds for gas and electricity.
"Some firms, including nPower, may even be supplying gas and electricity at a loss."

More than 3.5million households are described as being in "fuel poverty" - spending more than ten per cent of disposable income on heating and lighting.

This figure is estimated to increase by as many as 40,000 for every 1 per cent increase in power bills.

Assuming an average price rise of ten per cent, this would increase the number of people in fuel poverty by 400,000.

If the increase was as high as 20 per cent, the total would rise by 800,000.
Analysts at the French bank SociÈtÈ GÈnÈrale expect British Gas to raise household bills by 9.9 per cent for gas and 4.5 per cent for electricity.

Tim Wolfenden, of the price comparison website, said: "This could rapidly turn into price rise misery for consumers in 2008."

A spokesman for nPower refused to comment ahead of the announcement on prices.

British Gas said it is keeping the situation under review.

NWN: So this is the future of energy in the UK is it ?
Margaret Thatcher destroyed our coal industry, then brought in the idiotic privatisation schemes that were taken up by many areas of profitmaking.
Our North Sea oil and gas reserves were sold off.
Consecutive Post War British Governments have allowed our initial advances in nuclear energy in the 40's and 50's to fall by the wayside. Hell, even Iran a major oil producer, is building nuclear power stations now !
We now have to go 'cap in hand' to buy energy resources from other Countries.
For as long as I can remember ,we have had literally thousands of old people die of cold every Winter in the UK. This is not acceptable !
LATEST NEWS ON THIS ISSUE ...................UK treated as Treasure chest by foreign Countries ! What a bloody surprise. Read this link;


Anonymous said...

Will this also effect the cost of coal?

Anonymous said...

Put another log on the fire.

Anonymous said...

I bet Old Nick won't be one of the people shiverring this winter, with all those unwanted membership renewal forms to throw on his post hearth open fire, lol

Anonymous said...

put the charges up in winter ,because we may have a hot summer and proffits for share holders will make a dive iff we do ,this is corparet gread by privetised companys who constantly want to make bigger proffets every year and iff we do'not ,put the price up .all uttillites /gass/electricty/water .should be state controled and not run in the interrest of gready shareholders.
the gready severn trent want their bill payed in 8 months .gready basterds ,i pay my bill over a period of 12 month so stuff your threats severn trent.s
keith axon.
national socialist.

Anonymous said...

Perhaps it's all a con to go along with global warming? As the weather becomes warmer we use less fuel, and they need to make up for the loss?

Anonymous said...

Spelling bee, someone, lol

Anonymous said...

British energy and utility assets have been transferred to European companies (ie to the EU).

This is part of the planned deconstruction of the UK.

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