Energy companies face ire over rising prices

Despite slide in wholesale gas prices, energy companies seem to be set for introducing yet another round of price hikes for consumers. Forward gas price tag has seen a decline over last month. Current quote for gas delivery this winter is pegged at 88p per therm, this was 104 p last month. Similarly, Next day delivery price for gas is currently at 47p in contrast to 69p last month. This is almost 32% decline. Despite this decline, all the major energy firm including E.On, Scottish Power, Scottish and Southern Energy are planning to increase retail energy price.

Crude has also witnessed almost 20% decrease in the price in last one month. Andrew Horstead, an energy consultant with Utilyx, has said that low summer demand is the main reason behind the slump. However, he claimed that such slump won’t be translated into lower price for consumers. He also warned consumers to be prepared for yet another hike in prices.

Energy companies procure their gas using several short and long-term contracts. EDF announced 17 percent rise in electricity alongwith 22 percent increase in gas tariff for its five million strong UK consumer base leading the price hike. Following the suit was British Gas which hiked the price by as much as 44% in some regions.

Energy companies are facing flak for such increases. MPs have taken note of these increases and have condemned them. They have accused the major energy companies of forming the cartel and thus driving the prices up.

Please visit www.scottishpower.com, www.scottish-southern.co.uk and www.eon-uk.com for more