Energy Bills for UK Households On The Rise

Warnings have been issued stating that energy bills are on the rise for households in the UK. The largest hikes are expected during the winter months, hitting an all-time high when 2008 comes to a close. Future increases are expected well into 2009. When wholesale costs increase this translates into bigger bills for consumers. So far, the biggest increase in pricing was seen in 2006 when prices increased by 38 pc. In 2008, the increase may be as much as 46 pc.

On average, prices have increased from £343 in 2004 to a whopping £557, and it’s not over yet. These increases have been across the board, with reports from suppliers such as British Gas, EDF Energy, npower, Scottish Power and others.

In 2008, consumers can expect to see an initial increase of about 10 pc in their bills. This will be followed by subsequent increases over the next year. These increases are in addition to the average increase of 15 pc typically seen at the beginning of the year. Interestingly, suppliers have noticed a decrease in new customers since the most recent price increase.

Many companies have large profits to report. These suppliers have recently been criticized for gouging consumers, while households are struggling with an increased cost of living.

Dwindling supplies in the North Sea are cited as one of the reasons for the increase in prices. Suppliers are paying higher rates and these are being passed on to consumers.

Although, most suppliers are keeping their future plans to increase prices rather quiet, the shortage in supply translates into higher costs for suppliers and consumers alike.

www.britishgas.co.uk