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08/07/2011
British Gas Set To Raise Energy Prices
British Gas has today begun notifying its customers it will raise domestic tariffs for gas by an average 18%, and for electricity by an average 16%1, on 18 August 2011.
British Gas said it recognises the difficulties customers are facing in the current economic climate, but today’s announcement follows steep rises in wholesale costs, which have increased 30% since last winter due to higher global demand for gas, driven by increased consumption in Asia and the impact on supply of unrest in the Middle East and North Africa.
Britain now imports almost 50% of the gas it needs from other countries around the world, and British Gas pays the market rate in the global wholesale energy market.
But the company have said they cannot continue to make a loss on the energy it sells, as they need to be a profitable business in order to invest in future sources of energy for Britain. The company is investing around £1.5 billion this year alone in securing new sources of energy for its customers.
These include: Free loft and wall cavity insulation; EnergySmartTM - a free online service, which includes a free energy monitor; and flexible payment termsBritish Gas Managing Director, Phil Bentley, said: "We know there is never a good time to raise prices, but we are buying in a global energy market and have to pay the market rate.
"Rising wholesale costs is an issue facing all energy suppliers. Our advice to customers is to wait and see what happens in the energy retail market as a whole before making any decisions about switching supplier.”
As a result of today’s announcement, annual dual fuel bills for customers with average consumption are forecast to increase by £190. However, owing to the warm spring weather and continuing energy efficiency, British Gas customers may not see an increase in their dual fuel bills from last year.
(BMcN/GK)
British Gas said it recognises the difficulties customers are facing in the current economic climate, but today’s announcement follows steep rises in wholesale costs, which have increased 30% since last winter due to higher global demand for gas, driven by increased consumption in Asia and the impact on supply of unrest in the Middle East and North Africa.
Britain now imports almost 50% of the gas it needs from other countries around the world, and British Gas pays the market rate in the global wholesale energy market.
But the company have said they cannot continue to make a loss on the energy it sells, as they need to be a profitable business in order to invest in future sources of energy for Britain. The company is investing around £1.5 billion this year alone in securing new sources of energy for its customers.
These include: Free loft and wall cavity insulation; EnergySmartTM - a free online service, which includes a free energy monitor; and flexible payment termsBritish Gas Managing Director, Phil Bentley, said: "We know there is never a good time to raise prices, but we are buying in a global energy market and have to pay the market rate.
"Rising wholesale costs is an issue facing all energy suppliers. Our advice to customers is to wait and see what happens in the energy retail market as a whole before making any decisions about switching supplier.”
As a result of today’s announcement, annual dual fuel bills for customers with average consumption are forecast to increase by £190. However, owing to the warm spring weather and continuing energy efficiency, British Gas customers may not see an increase in their dual fuel bills from last year.
(BMcN/GK)
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Centrica Posts £1 Million In Profits - To Consumers Anger
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