Power prices to soar again

July 27, 2006

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MILLIONS of households were reeling from another rise in energy bills today after British Gas said it would hike prices by as much as 12.4 per cent.

British Gas owner Centrica said its 10.7 million gas customers will be hit by a 12.4 per cent increase on September 4 while its 5.8 million electricity customers face a rise of 9.4 per cent.

British Gas promised customers who signed up for special "price fixed" accounts in April this year that their bills would remain the same until 2009.

They will be unaffected by today's rise.

The company blamed the soaring cost of the wholesale gas it buys to supply its customers which saw British Gas make record losses of é143m in the first half of "its most difficult year".

Losses

The losses at British Gas cut Centrica's overall pre-tax profits from é894m to é569m in the six months to June 30. Centrica said the cost of wholesale gas had soared 71 per cent in the last 12 months, leaving it "no alternative but to increase prices" for its British Gas customers.

Wholesale gas on the market for this winter is now 266 per cent more expensive than it was for the winter of 2002 to 2003.

It is the fourth inflation-busting increase by British Gas in less than two years. It follows a 22 per cent hike in gas and electricity bills by the firm in March.

Earlier this week, rival EDF Energy said it will charge its customers 19 per cent more for gas.

Articles

British Gas to be hit by hikes

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Elliot, Manchester (27/07/2006 at 09:25)

Are British Gas purposely trying to drive customers away from them. I can't believe people are putting up with it. Switch to another supplier! I left them years ago and the move went smoothly and I am paying less than I would if I had stayed with BG. They deserve to lose all their customers because of their arrogance and greed.

Pamela, Crumpsall (27/07/2006 at 10:11)

Not only do British Gas think a price rise is justified but they are also making excess profits. In february, they increased the price and then estimated the amount that should be charged at the higher rate. This should not be allowed to happen. Price increases should not be allowed until the meters are read or you could be overcharged and british Gas can make extra profits from Gas and Electricity that you HAVEN'T used.

Power companies should not be allowed to get away with this loophole.

john, whitefield (27/07/2006 at 11:27)

anybody who is still with british gas is mad,go on the internet or phone and swap your supplier,its so easy.im with seeboard now called edf energy,they are the cheapest.

Ms D, Manchester (27/07/2006 at 11:48)

British Gas rely on customers who either can't be bothered to change supplier or customers who think it is difficult to change.

It isn't ! Every customer should leave them. Go onto one of the websites like U-switch. It couldn't be easier. I changed years ago and have saved a fortune. I would never to back to British Gas and their fat cat profiteers. If more customers left, they would have to do something to survive !

Colin W, Stockholm (27/07/2006 at 12:28)

Was i the only one who saw this coming. Surely not ?

BIg Blue Doris, Lower Lymm (27/07/2006 at 14:26)

This is madness! just how do they expect oap's and families on fixed incomes to pay for these outrageous increases? If the consumers would only banned together and refuse to pay. This is the ecomonics of the mad house, what next the Bank of England putting up interest rates because inflation has gone up? how will paying even more money out of our fixed incomes help the us. The get rich quick government should scrap the 5% vat on fuel for house holders immediately.

Pamela, Crumpsall (27/07/2006 at 15:55)

The people who say people should switch from British Gas obviously don't see the reality. Let me use myself as an example.

In the winter quarter I received a quartly bill of well over ??200. I'm on benefits (lots of medical treatment), I use two radiators and very little for cooking. I can only pay off the debt at ??15 per fortnight so as to manage other bills. Until the debt is cleared you cannot switch. But then the next bill arrives. Catch 22.

A lot of people cannot switch that easily much as we would like to.

ian macdonald, leigh (27/07/2006 at 16:25)

british gas once again raise prices way above what the normal working class people can manage to pay.When are the govenment going to either stop these huge price hikes or give help to people who struggle to pay their bills.Why not have a power supply company run by the government

martin, edinburgh (27/07/2006 at 16:44)

just so everyone knows, EDF energy last week announced their gas bills will be going up by approximately 20%. Are there any "cheap" suppliers anymore?

Andy, Wythenshawe (27/07/2006 at 17:24)

Swopping supplier will make very little difference, most people will be better off by about ??1 per week, is it worth it.

Three years ago i thought energy costs were too cheap, now, they are out of control, it should have taken 10yrs for them to reach this level. All the hike in prices will do is force people on to ready made microwave food, and push many more of us into the poverty trap. Looks like we could be heading for a world wide depression.

OSE General Agent, Manchester (27/07/2006 at 22:06)

Dear Mr Editor,

Im sick of people moaning over fuel prices, do they not understand that it isnt British Gas making the increases but the sector which we work. Fuel has risen in price world over. British Gas have to keep up with demand, otherwise they will go under and the North West will loose 1000s of jobs.

Im proud to be an Agent on the phones. Yes times are tough at the moment and it is busy, but Im proud to work for British Gas and so is my Mum and my Auntie. It pays the bills. Call us and we will offer you some tips on how to be energy efficient but dont just moan and say swap sites etc etc as you will see that all us providers are similar.

Tell you what we are recruiting as well so why not come along to our open days and chat with staff and see what a great company we are...... you get loads and loads of benifits and vouchers and I have even won a TV and Theatre tickets for promoting.

Happy in Trafford SD

m.e, cheshire (28/07/2006 at 08:17)

NOT ONLY DO B.G OVECHARGE BUT THEY DELAYED ALL THE PAPERWORK WHEN YOU WANT TO CHANGE,
I HAVE JUST BOUGHT A HOUSE THAT HAS B.G METERS AND IT HAS TAKEN 6 WEEKS TO GET THE ACCOUNT CHANGED AND THREE WEEKS FOR SOUTHERN ELECTRIC TO FIT NEW METERS. IN THE MEANTIME IT COST ME IN MAKING 20 PHONE CALLS CHASING EVERYTHING UP. THATS CALL CENTRES FOR YOU

Andy, Wythenshawe (28/07/2006 at 18:01)

Take the utilities back under government control, we cannot allow individuals to make money out of a necessity.
It IS part BG'S fault, they allowed customers that were willing to pay a premium to freeze the amount they pay, forcing everyone else to pay more, plus they pay profits to share holders instead of using it to control prices.

Its also the governments fault for not acting earlier when it was clear north sea gas was running out, and also allowing prices at one stage to fall so low , people were using it for fun.
We are using far too much energy in this country .. for example .. why are supermarkets open 24hrs just so a handful of people can buy a loaf of bread.
We can start by returning shopping hours to what they were 30yrs ago ... did anyone starve then ?, We cannot waste energy just for convenience sake!!

Anthony, Accrington,Lancashire (31/07/2006 at 14:11)

I have scrapped having natural gas altogether, and got one of the independent LPG suppliers NOT Calor to kit me up with LPG Propane with outdoor cylinders, piping/regulators and new cooker/wall heater etc, and although I have to pay the cost of regular replacement LPG Propane cylinders I find it much cheaper, AND I pay as I go with this gas supply.

Ex BG worker, Manchester (31/07/2006 at 14:48)

Hey Mr general agent, newsflash buddy, or should I say OLD newsflash. British Gas have already made thousands of people redundant, just to line their already fat pockets. This is not just keeping up with industry, I was there as 300 people in the office I worked in had there future taken away from them. Don't tell me BG are justified in rising their prices, YET AGAIN! I really hope they do go under and they certainly will if they keep this up,Just so you know mine was not one of the jobs to go in case you were wondering, I left out of disgust!

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