Another power firm imposes inflation-busting price rises

SCOTTISH AND Southern Energy today became the third power company this summer to announce an inflation-busting rise in gas and electricity bills, placing more pressure on cash-strapped families.

The company's Shropshire customers will see their gas bills jump by 18 per cent from September 14, while the price they pay for electricity will increase by 11 per cent.

The news came as latest figures showed the British high street appeared to be crawling its way out of recession, with retail sales up 0.7 per cent in June.

The Office of National Statistics this morning revealed business in the retail sector was 0.4 per cent up over the past year – although shoppers appeared to be shunning town centres in favour of internet-based stores, which enjoyed a 20 per cent rise.

Food retailers, including supermarkets, saw their volumes decline by 4.2 per cent on the previous year, the largest fall since records began in 1988.

Highest

And there was more bad news on inflation as the ONS revealed food prices were up 5.8 per cent on the same time last year – the highest jump since March 2009.

The Scottish and Southern Energy price rise, which follows similar hikes by Scottish Power and British Gas, means a typical annual dual-fuel bill will increase by £171 to £1,265.

Chief executive Ian Marchant said: "I am sorry we have had to announce an increase at a time when many people's budgets are under strain, but the upward pressures on prices have become too great."

Today's moderate imp-rovement in high street sales came as retailers such as Marks & Spencer and other clothes chains started their summer sales early.

DIY retailer Kingfisher today revealed its sales were down 0.5 per cent in the second quarter of this year. Its Screwfix business, which has an outlet in Shrewsbury, did much better, showing a sales rise of 10.5 per cent.

Meanwhile Chancellor George Osborne has re-mained on track to meet his annual borrowing target.

Public sector net borrowing, excluding financial interventions such as bank bailouts, was £14 billion in June, compared with £13.6 billion the same month the previous year, the Office for National Statistics re-vealed.

By Carl Jones