Various energy providers now hiked up the interest rates
February 6, 2008
The news that energy companies across the UK were planning to raise the cost of energy usage came as a blow to consumers, as this meant further financial strain on household finances. The announcement from energy companies came late last year just as consumers though that they would see a reduction in their outgoing because of the December cut in the base interest rate.
However, for many any savings that have been made on their mortgage repayment will now be swallowed up by rising energy costs.
A number of the UK’s major suppliers have now hikes up the cost of gas and electricity usage, in some cases by a considerable amount. It is thought that many households could once again be pushed into fuel poverty as a result of these price hikes, which the energy companies have stated are necessary because of the increase in the cost of wholesale energy. Even the Chancellor of the Exchequer Alistair Darling has now become involved in the price hike issue, liaising with Ofgem to learn more about the reasons behind the hike.
One industry professional stated that energy companies are making a fortune from consumers, and are giving their customers a raw deal. She stated: “They are making five times more per customer this year than they were last year.”
According to one official from EnergyWatch: “The people who really suffer the most when we see extreme price rises in the energy market are those who, sadly, can least afford it”. British Gas officials, however, said “In the last six months of 2007, higher wholesale gas prices have reduced British Gas operating margins to around 1%.”
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