Watch out for rising gas bills
August 2, 2007
Energy giants, including British Gas, have cut the cost of gas and electricity since March of this year, which was great news for customers.
However, it has now been revealed that customers may have to face rising bills again, as the energy giants are under pressure to provide billions of pounds to the companies that run, maintain, and repair gas main networks in the UK. This could result in consumers have to foot a huge bill between them, which will see the cost of bills rise again.
Gas and electricity bills were slashed by some energy companies this year following a reduction in the cost of wholesale energy last year. This was welcome news for many, as energy prices had rocketed over the previous year. However, National Grid along with two smaller companies that are responsible for maintenance and running of the gas networks are now demanding £12 billion from the energy companies. It is estimated that customers will have to pay for around £1.3 billion of this.
One official from energy giant British Gas said: ‘Investment in energy for the UK is vital but it’s important that the industry keeps the cost of these investments under control so we can offer best value to our customers.’
According to one Energywatch official: ‘When National Grid was allowed to sell off some off the gas networks for billions of pounds, the consumer was promised significant financial benefits because the companies would become more efficient. That was changed to ’should not be worse off ‘, and now Ofgem is indicating consumers will actually be worse off.’
He also stated: ‘What we need to know is why the companies are asking for more money, and whether they are not simply trying to claw back their acquisition costs.’
Alan Wright
2nd August 2007
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