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British energy bills higher than anywhere else in Europe

Britain’s energy bills are rising faster than Europe: official

Thursday 5 February, 2009

By becca.talbot@consumerchoices.co.uk

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Shocking new figures reveal that gas and electricity bills in Britain are rising faster than in the much of the developed world.

Domestic fuel price inflation figures published this week by the Organisation for Economic Cooperation and Development (OECD), a group which represents a large number of the world’s richest countries, show that energy bills have increased by 12.1% in the UK between 2007 and 2008, while the average in OECD nations is a fall of 8.9%.

Britain’s neighbouring countries France, Ireland, Spain and Germany all had energy bill deflation, and in the US, bills dropped by 21.3%.

The figures, released by the OECD in its monthly inflation report, will again raise the question of whether continental energy suppliers are overcharging British consumers. Three of Britain’s biggest six gas and electricity firms in the UK - E.ON (www.eonenergy.com), npower (www.npower.com) and EDF (www.edfenergy.com) - are European-owned.

Though wholesale coal and oil prices have dropped in recent months, so far only British Gas (www.britishgas.co.uk) has reduced gas bills for its customers this year. The 10% price cut comes into force later this month. The rest of the “big six” suppliers have yet to announce price reductions.

The Energy Retail Association (ERA), which represents the energy giants, said the OECD’s figures were misleading and UK consumers were still getting a good deal.

ERA chief executive Garry Felgate said in the in the Daily Telegraph : “The UK has the most competitive market for gas and electricity in the world. The latest OECD’s figures don’t show the actual level of prices, just the change over the last 12 months.”

“Despite last year’s price rises, recent government data show that domestic gas prices are still the lowest in the main European Union area.”

Figures from the Department for Energy and Climate Change show that while gas prices in the UK are 17.6% below the EU average, electricity costs are 15% above average.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “It seems British consumers are suffering with high energy prices because of the country’s reliance on imported European gas, and its lack of storage capacity. Until the government acts, consumers will continue to struggle with high energy bills.”

Eagle advises: “The easiest way to keep costs down is to switch to another supplier, however it’s important to know when is the right time to switch. There are ways that you can reduce your energy bills without switching suppliers, such as making your home more energy efficient.”

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