UK NEWS

£1,300 A YEAR FOR YOUR POWER AFTER NEW PRICE HIKES

MORE MISERY: Up goes gas again

Saturday August 30,2008

By Louise Barnett, Consumer Editor

ENERGY bills for hard-pressed families smashed through the average £1,300-a-year mark for the first time yesterday.

The punishing charges are now 40 per cent higher on average than at the start of this year – a record increase.

The figures emerged after the last of the “big six” power firms announced huge rises.

Watchdog Energywatch called it a crisis and said that the Government should step in. Gas and electricity bills were pushed to the record high with increases from rivals npower and Scottish Power.

Bosses of both firms, which have nearly 12 million customers between them, apologised for their eye-watering increases.

Now all six major energy suppliers have increased their prices twice since January 1. As a result, the average household will fork out nearly £400 extra for their gas and electricity over the next 12 months.

npower yesterday put up its gas prices by 26 per cent. The German-owned firm, which has 6.6 million British customers, also raised electricity prices by an average 14 per cent.

Scottish Power, which has 5.2 million customers, announced hikes of 34 per cent for gas and

nine per cent for electricity, with effect from Monday. Its duel fuel customers will see their bills rise by 25 per cent.

All six energy giants have blamed soaring wholesale costs for their latest bill increases.

npower managing director Giuseppe Di Vita said yesterday: “We have made this decision extremely reluctantly, especially as household budgets are being squeezed so much.”

Scottish Power director of energy retail Willie MacDiarmid said: “Although we are one of the last companies to announce increases, we are sorry we couldn’t hold on any longer.”

The increases sparked outrage from charities who warned that the elderly and vulnerable would struggle to heat and light their homes this winter.

Average annual household energy bills are now £1,307 compared with the January 1 average of £912, according to price comparison site uSwitch.com

Duel fuel customers who get both gas and electricity from the same supplier now pay an average £1,283 a year – up 40 per cent from £912 at the start of 2008, according to Energywatch.

It said this year’s rocketing energy bills were worse than those in 2006 when prices rose an average of 32 per cent.

Energywatch director of campaigns Adam Scorer called on the Government to step in to protect the most vulnerable.

“Coherent and proportionate action is needed to deal with this crisis,” he said.

Liberal Democrat leader Nick Clegg said: “It is disgraceful that the major energy companies are lining up to clobber customers with enormous price rises.”

Age Concern’s director general Gordon Lishman said: “Many pensioners, already worrying about whether they can afford to heat their homes this winter, will be outraged by news of yet more colossal price hikes.”

The charity National Energy Action warned that the latest round of price hikes could push one in five British homes into fuel poverty.

Its chief executive Jenny Saunders said: “It is imperative that the Government now announces a comprehensive package of measures to help people who face a desperate struggle to pay fuel bills.”