Warning over big rise in cost of energy
Saturday 14th May 2011, 1:37PM BST.
Shropshire households could be hit hard by massive rises in gas and electricity bills amid fears prices could be so high that people could have to turn their heating off at some point next winter.
Energy watchdogs today predicted average households would have to pay an extra 50 per cent, or £500, over the next four years.
Cash-strapped families are facing hikes as Britain becomes increasingly reliant on imported gas, analysts have warned.
According to broker Deutsche Bank, typical household bills could rise by £500 a year by 2015 as suppliers pass on the costs of rising wholesale prices.
Other energy analysts say millions of homes face rises of about 50 per cent as the cost of heating soars.
The warning comes two days after the Bank of England signalled more misery with a likely rise in interest rates. And it follows an unprecedented squeeze on finances from tax rises, record fuel prices and meagre pay rises or pay freezes.
Part of the increase in bills will be used to pay for a new generation of nuclear power stations, the upgrading of the National Grid and the creation of thousands of wind turbines to meet tough climate change targets.
In a research note on the prospects for Scottish Gas owner Centrica, an analyst for Deutsche Bank suggested even higher bills were likely from 2013 as a result of suppliers trying to protect their profit margins.
The analyst forecast an average dual-fuel bill could rise by between 30 per cent and 50 per cent to a high of £1,600 by 2015.
Price comparison site Uswitch said that a survey of almost 1,600 of its customers in January had indicated that 20 per cent of them had turned their heating off regularly in order to save money last winter.
The firm’s spokesman Ann Robinson, the former chairman of Energywatch, said: “This time it’s going to be a minimum of 25 per cent. Many people are really going to struggle to pay their bills. We have to pray for a mild winter.”
Governor of the Bank of England Mervyn King has predicted gas prices will rise by 15 per cent this year
Energy prices are under investigation by Ofgem. In its initial report, published in March, the regulator said energy companies raised prices faster in response to rising costs than they cut them when costs fell.
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After watching Mervyn King on TV a few days ago telling us that fuel bills will rise and now the smart boys at the analysts doing the same, how likely is it that the energy companies won’t move quickly to raise bills? ZERO CHANCE.
Even if there was no danger of large increases, these companies would put their prices up and I’d be grateful if Mervyn King, the Deutsche Bank Boys and any other “experts” would simply keep their mouths shut and not put ideas into the energy companies’ heads.
Anyway, why are prices going up? Deals are done in Dollars and the Dollar has crashed. We should be seeing reductions in fuel and energy bills, not increases.
The energy companies are effectively a cartel, working closely to ensure that there’s little point in switching to a competitor. I’ve been looking at their prices recently and they are now pretty similar.
And if you do cut your use of energy, you’ll still get hammered due to the unwelcome return of the standing charge. As we use less, they find ways of charging for something else.
Where the OFGEM regulator? Head in the sand and no interest in protecting consumers.
Let’s pray for a mild Winter and the quick acceleration of global warming. Deserts in the South of England – yes please, I’m ready and waiting. Get those parasols out.
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No doubt the energy companies will still make massive profits.
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Thanks Conservatives for selling off gas,water,electric,now we are all being held to ransom to provide profits for greedy shareholders.
A big mistake!
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let me just say before andrew finch gets on here
not looking forward to this winter my gas bill was over £300 and i kept the heating on min most of the time.may be i will buy a log burner lots of trees around here
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‘fears people may turn their heating off altogether this year’
I had to turn mine off altogether last year!
And as for the OFGEM regulator, I thought it had been disbanded!
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