Energylinx UK Energy Industry News Service
December 3, 2003
British Gas Increase
BRITISH GAS INCREASE DOMESTIC ENERGY PRICES BY 5.9%
From January 10, 2004 some 12.5 million British Gas and Scottish Gas customers will see their home energy bills increase by 5.9%, and on March 1, 2004 a further 2.5 million prepayment customers will also see their home energy bills increase.
This latest price increase comes within three weeks of new domestic prices being announced by both Powergen and Atlantic Electric and Gas.
British Gas managing director, Mark Clare is reported to have said that "Underlying wholesale energy costs have risen since the summer and continue to rise.
"Like other suppliers, we are being forced to reflect these increased costs in our prices. Over the last few months we have been absorbing these additional costs ourselves, but unfortunately we are no longer able to do so."
British Gas said underlying wholesale gas prices have increased by 15% over the past year, with predictions of a further 21% rise in 2004.
However, consumer groups such as Energywatch have been quick to pour scorn on the reasons given for the price increase. Allan Asher, chief executive of Energywatch is reported to have said "There were significant reductions in wholesale energy prices over the past few years but these were not passed on to consumers. It seems grossly unfair that consumers should now have to pay significantly more for their gas and electricity,"
Energylinx has already updated its tariff calculators to allow domestic customers throughout the UK to compare existing and new prices. For those who have never switched gas or electricity supplier before savings on average of £135 can be achieved.
Even those customers who have switched supplier in the last year might be pleasantly surprised by the savings that are available by switching to the current least cost supplier for their home.
It is also worth checking out the Energylinx Green Energy Comparison, based on the Friends of the Earth Green Energy League, to see just how little it now takes to make a difference to the environment by switching to a green energy supplier.