Widely reported in the media today is that UK fuel prices are set to soar by some considerable margin which may make more energy efficient appliances a benefit to many consumers.
It has been reported that British Gas customers will “be badly hit by the company’s price hikes,” with thousands put at risk of “fuel poverty”.
BBC News Online reports today that the anticipated rise announced by the energy giant will push the cost of gas up by 12.4 per cent and electricity will go up by 9.4 per cent.
“The rises are expected to add an extra £52 a year to a typical gas bill,” adds the Sun, “and £24 a year to an average household electricity bill.”
Energywatch chief executive Allan Asher also slams the price hikes, calling them a “body blow” to consumers, who, he urges, “should shop around for the best deal and make their homes more energy efficient.”
British Gas blames dwindling supplies of North Sea gas, explains The Mirror, “forcing it to import more, and rising world oil prices for increases several times the rate of inflation.” But the paper isn’t buying that, calling the decision a “shocker” and pointing out that older people are likely to be the hardest hit by the rise.
But Mark Clare, the British Gas managing director, is adamant about the need to pass on the cost of fuel to his customers. “The UK energy industry has never faced such high wholesale gas prices – looking forward, the price for 2005 is more than 50 per cent up on 2003 prices,” he said. “Depletion of North and Irish Sea gas reserves, the UK’s consequent need to import larger volumes of gas, and higher oil prices are pushing up wholesale prices. The era of cheap UK energy is over.”
