Electricity prices to go up

Warning has been sent to users of electricity and gas by the energy bosses that the prices will have to go up considerably before the year ends.

The chief executives of the 6 major energy firms in the United Kingdom were making an appearance before a parliamentary committee where they denied that they were profiteering from the increasing fossil fuel prices.

Though the chief executives maintained that electricity and gas bills would rise they could not disclose by what amounts the increases would be. several reports in the last few weeks have indicated that energy bills may increase by up to 40% before the year comes to an end. Such a rise would mean that the energy bill per year for the average household would reach a record high of one thousand and five hundred sterling pounds. Since this year begun prices have risen by close to fourteen per cent already.

The chief executive of Centrica, Sam Laidlaw, disclosed that his firm was buying natural gas at the rate of one sterling pound per therm while they were charging their customers only sixty pence a therm which he said could not go on sustainably.
The chief executive officer of Scottish and Southern Energy, Ian Marchant, was also of the view that prices would have to go to match the increase in the world energy prices. The chief executive officer of E.ON was also of the idea that prices would have to go up significantly. The chief executives also revealed that the gas reserves in the United Kingdom were getting exhausted and as a result most of the gas was now being imported.

www.centrica.co.uk