Energy prices expected to rise further

Last Updated: 3/26/2008 9:34:45 AM
Source: http://www.energysavingtrust.org.uk/resources/daily_news/energy_efficiency_consumer_new_tag/energy_prices_expected_to_rise_further

Residential energy prices are expected to rise further in 2008 as UK energy suppliers look to protect their margins in the face of rising wholesale prices.

Scottish and Southern Energy (SSE) this week became the last of the big six residential energy suppliers to raise its prices.

Wholesale electricity prices have leapt 90 per cent and gas 100 per cent since March 2007, SSE said.

Every UK household will be hit with average bills of more than £1,000, analysts say.

Scott Byrom, utilities manager at price comparison website moneysupermarket.com, said the average standard quarterly cash or cheque tariff for medium users of gas and electricity will be over £1000 with all of the big six energy giants.

Meanwhile, Energyhelpline.com predicted all-time record energy bills of £1200 for an average household this winter.

Tim Wolfenden, head of home services at uSwitch.com, forecasted a second round of energy price hikes which could add up to ten per cent or £105 to household bills.

"Increases in the cost of gas on the forward market will make further price rises inevitable before the end of the year - the industry has margins to protect and shareholders to satisfy," he said.

"It will not meet all the cost out of its own pockets and is likely to ask customers to help cover the burden."

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