A few of you reserve special hatred for energy companies and its easy to see why…
We have been writing about their pricing skullduggery for a while now and it was only recently we were asking Are the energy suppliers stitching you up?
And with rumours of a possible 40% energy price rise just around the corner, energy chiefs have been summoned by MPs who want them to explain why.
Comparison website uSwitch.com said that our average household bill would rise by about 10%, (about £105) by late summer, with a further 15% (or £173) hike again in January 2009.
- British Gas prices set to rise
For instance, Centrica, the owner of British Gas, warned it may have to take action after wholesale gas prices increased by 92% from a year ago, and wholesale electricity costs doubled. Back in January, British Gas increased their gas and electricity bills by an average of 15% because of the rise in wholesale prices.
Centrica's chief executive Sam Laidlaw is just one of the senior industry figures due to appear before the Commons Business and Enterprise Select Committee on Tuesday.
Energy industry sources suggest we could be paying up to £400 more a year for gas and electricity. The energy suppliers say they are merely reacting to the big rise in wholesale gas costs, which in turn have been triggered by a huge rise in the price of oil. Oil has just reached an all time high of nearly $140 a barrel.
It’s no wonder that another rise in energy prices will anger many of you. Research from the energy industry has shows that wholesale gas prices have gone up by over 70% so far this year!
Uswitch Energy Calculator - find out what you can save on your bills today.
Uswitch link for saving on EVERYTHING – includes heating cover, loans, broadband, current accounts, water, car insurance, etc
Because of the already massive rises in energy prices this year, MPs, who are looking into competition in the retail energy market, want to know what suppliers expect to happen to fuel bills this winter.
They will also grill energy chiefs on the extra help being given to low-income and disadvantaged families to help them with the impact of rising bills.
Energy regulator Ofgem, is investigating the energy market, revealed plans last month to share data on people on low incomes with energy companies to help people pay their fuel bills. The proposals, (which need Parliamentary approval) are designed to ensure that financial help fuel payments are aimed towards the elderly and vulnerable.
- ‘Fuel poverty’ affects 10%
The Government estimates that over 2.5 million families are in ‘fuel poverty’ (defined as when more than 10% of household income is spent on fuel bills) but watchdog Energywatch says the number is over 4 million.
The rumour is that any price rises will be announced in August, when energy bills are not at the forefront of our minds and in the hope that we won’t notice.
Naturally there is a huge reluctance in the energy industry to be the first to reveal a big rise, so the rises may be unveiled in stages.
However its done, a possible 40% rise in average fuel bills would be a massive kick in the teeth for those of us already struggling with higher food and fuel costs.
Some analysts believe the increases will be closer to 25% and even though that won’t be welcome, it will be preferable to a 40% rise won’t it?
Are you already struggling with energy prices? How does another possible rise make you feel?
Why not let us know in the comments?
Uswitch Energy Calculator - find out what you can save on your bills today.
Uswitch link for saving on EVERYTHING – includes heating cover, loans, broadband, current accounts, water, car insurance, etc
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