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Rising wholesale prices
could push British Gas bills up
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British Gas bills may rise again
Garnet Roach garnet@consumerchoices.co.uk
Centrica, the owner of British Gas, has warned that energy prices could begin to rise again due to escalating wholesale costs.
British Gas (www.britishgas.co.uk) already increased gas and electricity bills by an average of 15 per cent in January and it’s estimated that prices could rise again by around 10 per cent by the end of the summer - adding a further £105 to bills - with a further 15 per cent rise expected by January 2009.
Wholesale prices have increased by 92 per cent since last year, pushing energy suppliers such as British Gas to start increasing energy prices.
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"For the fuel poor, it’s terrible news"
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British Gas is expected to announce the price rise in its quarterly results tomorrow in a bid to prevent its gas business from going into debt, despite reporting profits of £1.9bn only five months ago.
Allan Asher, chief executive of industry watchdog EnergyWatch, told the BBC that if British Gas raised its prices, other suppliers would follow.
“Sadly if one company goes ahead and raises prices, others will respond,” he said, warning that “for the fuel poor, it’s terrible news”.
Chris Eagle, EnergyChoices.co.uk commercial manager, said: “This is bad news for consumers, especially given the current economic climate. If you find that your energy bills are increasing together with your mortgage and weekly shopping bills, then now is the time to start budgeting and look at where you can save.
“Switching to a new energy provider can cut hundreds of pounds from your annual gas and electricity bill and even switching to a different tariff, such as paperless billing, can make a difference,” he advised.
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