Energy News

Energy Bills Set to Rise by Another 25%

Wednesday 22 April, 2008

By Dan Drage

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The continuing rise of crude oil prices coupled with ever-increasing wholesale costs has led market experts to believe energy bills are set to escalate.

Consumer group energyhelpline.com has already expressed concerns over an impending ‘energy crunch’, which looks set to replace the global credit crunch in the population’s consciousness.

Prices are set to increase over the summer, adding an extra 25% to each household’s annual bill. With annual bills averaging at around the £1000 mark, this will mean an extra £250 a year on bills.

"There is no doubt that there is an energy crisis looming"

The strain on household finances has already been exacerbated by inflation busting rises in council tax, prescription charges, water rates and television licences.

Mark Todd of energyhelpline.com had the following to say:

‘‘There is no doubt that there is an energy crisis looming. This winter we have had the credit crunch. Next winter it will be the energy crunch. We feel it’s unfair that consumers are going to be hit so hard when the energy companies have been reporting such exceptional profits.’

Chris Eagle, Commercial Manager at Energy Choices, believes the typical consumer is not going to take this news lying down:

‘In the grip of a narrowing mortgage market, a tangible credit crisis, and rising bills in nearly all sectors of home utilities, news of the latest price hikes will come as a sharp shock to most consumers’

He continues:

‘Householders will not take these price hikes lightly however, so expect consumer groups to lobby the government until they take action. In the meantime, consumers should do all they can to save energy over the summer months, in anticipation of difficult winter bills.’