Utility bills on the upward trend

The biggest supplier of energy in the United Kingdom, Centrica increased the prices of electricity and gas and electricity prices. This has made analysts come to the conclusion that there will be another round of utility bill rises in the United Kingdom.

British Gas, the retail division of Centrica put up its market-tracker tariff, which alters every quarter to coincide with the changes in wholesale prices, by an average of 14.2 per cent for its customers of electricity and gas. A spokesperson for Centrica revealed the price rise will only apply to two thousand and five hundred customers on the niche tariff against a combined customer base of approximately sixteen million. However the firm has let out hints showing that electricity and gas consumers will be slapped with higher prices before the year ends.

The spokesperson said the increase in electricity and gas tariffs was necessitated by the high oil prices. The spokesperson disclosed that since mid last year the wholesale gas prices had gone up by one hundred and four per cent. Centrica has admitted that the huge rise in wholesale costs had reduced the profits of the firm as well as other energy utilities in the United Kingdom. In May a statement from the energy utility had indicated that electricity and gas bills would increase. The statement from the company had said that the energy utility would take all the necessary measures to ensure that they delivered reasonable margins.

Other energy utilities are expected to pass on the higher operating costs to the consumer.

www.britishgas.co.uk