Power bills to rise fuelling inflation

Energy suppliers in the United Kingdom are expected to increase the prices of electricity and natural gas for the coming twenty four months leading to a rise in inflation. This is what has been indicated by futures trading.

As per Spectron Group Ltd, a broker based in London, Natural gas for delivery this winter was priced at fifty four per cent higher than what it was at the beginning of the year. Futures contracts for the winter that begins next year are on an even higher level. Energywatch, a consumer group predicts that energy bills at the home level which rose by fifteen per cent in the first three months of the year will increase to catch up.

The increasing energy prices will pile pressure on the Governor of the Bank of England, Mervyn King as he tries to keep the inflation level down at three per cent. The inflation rate is expected to go beyond what the government has targeted.

The biggest energy supplier in Britain, Centrica Plc, revealed in may that theur half year results will show a decline in profits mainly due to the increased costs of fuel.

The prices of gas for households in the United Kingdom have increased by more than double since 2003. Now the average gas bill for an average household in the United Kingdom is six hundred and forty six sterling pounds per annum. Electricity bills on the other hand have increased by about sixty nine per cent. According to Energywatch the average home in the United Kingdom forks out one thousand and fifty eight sterling pounds on their electricity bill annually.

www.spectrongroup.com