Energy prices could be going up again
January 2, 2008
After having to deal with sky high energy usage costs in 2005 and 2006, many household in the UK were relieved to see their household energy bills come down earlier this year. A reduction in the cost of wholesale energy prices enables the UK’s major energy suppliers to slash their energy usage costs, saving households a small fortune in some cases, which came as a relief to many in light of the soaring interest rates costs.
However, it seems that the consumer can’t win, as just as the Bank of England announced a quarter point cut in interest rates a report has suggested that energy prices could now be on their way back up.
Earlier this week British Gas announced an intended rise in energy usage prices. Experts state that this is a sign of things to come, and that other suppliers will quickly follow suit, as is often the case in situations such as this. One industry expert estimates a rise of 10% in the New Year, which means that the average household could face bills in excess of £1000 per year for their energy usage. Some experts are even predicting a rise of 20% in energy usage costs by February of next year.
It is thought that rising oil prices and an increase in wholesale energy prices will contribute to rising energy usage costs for households, as more and more suppliers increase the cost of energy usage. Many are concerned that these hikes could push many households into fuel poverty, where they have to spend more than 10% of their household income on energy bills.
British Gas officials have confirmed that with immediate effect the prices on its market tracker energy plan will go up.
One British Gas official stated: “Customers who signed up to our market tracker product have always been aware that their prices were linked to the wholesale market and could go up or down on a three-monthly basis. As prices have risen over the past three months, the tracker rates have risen as well and will now be fixed until the next review in three months’ time.”
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