Fresh fuel misery as Scottish Gas to raise bills by 35%

Published on Wednesday 30 July 2008 10:41

SCOTTISH Gas owner Centrica today heaped misery on households after hiking gas and electricity bills.

Centrica, which is the UK's largest energy supplier with 15.9 million customers, is raising gas bills by 35% and electricity prices by 9%.

Average dual fuel prices will jump 25%.

The company blamed soaring wholesale energy prices for the move, which follows price increases from rival EDF Energy last Friday.

The price hikes come into effect immediately and will add an extra 262.80 a year to the average dual fuel customer's bill, or 72p a day.

British Gas managing director Phil Bentley said: "We very much regret that we have had to make this decision at a time when many household budgets are already under pressure.

"The simple fact though is that we have entered an era of unprecedented high world energy prices."

The company blamed increasing global demand, diminishing UK gas reserves and record oil prices for the decision.

But it said standard rate customers will not be hit with any further prices rises this year, while 2.1 million of its fixed-rate customers will not pay any extra at all.

Graham Kerr of energywatch Scotland, said: "The fact that Scottish Gas has trailed this announcement so heavily will not make an ounce of difference to the impact of this record massive price hike.

"A consumer who just takes their gas from Scottish Gas is going to see a massive 35% jump in their prices.

"I'm not sure that many will be able to take that news in.

"It's the consumer's bottom line that matters to us, not Centrica's. But at a time when suppliers have been complaining about higher costs and difficult times, customers may be looking with some interest at the Centrica profit statement tomorrow morning.

"Whatever the profits made by Centrica these price rises are primarily driven by an irrational and toxic link between the price of gas and the price of oil.

"Just because decoupling that link may be complex and not certain to succeed quickly, is no excuse for not trying. It is now an absolute imperative that Government directs the European competition authorities to explore ever avenue that might return some sanity to the gas price.

"Centrica have taken steps to shield certain groups of consumers from the worse of the impact, and we do not discount that. But no one seriously thinks that the range of measures from suppliers or the programmes available from government are fit for the purpose of fighting fuel poverty.

"High prices seem hardwired into this market for the foreseeable future. That hits the poor the hardest. The most important policy issue facing the government is how to protect vulnerable consumers from these hammer blows. So far it has not taken the necessary steps to fight fuel poverty yet. It needs to act now."