Archive for January 16, 2008

Average energy bill to hit £1000 per year (Part 2)

Folloing on from the announcement from NPower rises of up to 27.1per cent. EDF energy followed suit on 15th January by raising it’s average dual fuel bill by nearly £100 a year to £965 for those paying by direct debit as a result of the hikes. The new total without a direct debit discount is £1,007.At the weekend, regulator Ofgem said it had no plans to refer the UK’s main energy firms to competition authorities despite a survey showing nine out of 10 customers feel ripped off.

But independent watchdog Energywatch has already renewed its calls for the “big six” suppliers – British Gas, E.On, Scottish & Southern Energy, Npower, EDF and Scottish Power – to be referred to the Competition Commission this year after Npower’s move, which took the annual average bill for its customers above £1,000 a year.

Like npower, EDF blamed increasing wholesale and distribution costs and environmental obligations for the rise, which it said would add £1.92 a week to the average dual fuel bill.

EDF said wholesale gas prices had risen 117 per cent since February last year, with electricity up 90 per cent over the same time.

The cost of transporting and metering energy from power stations to homes had also gone up £4 per annum for electricity and £32 a year for gas users, the provider said.

EDF said the Government’s Carbon Emissions Reduction Target, which sets out new targets for cutting carbon dioxide emissions during power production, would cost customers £100 million a year for the next three years.

But energy consumer group energywatch said it was disappointed that EDF Energy had moved so quickly to pass costs on to its customers.

Energyhelpline.com said that British Gas, the country’s biggest energy supplier, is expected to announce price hikes for 16 million households.

Such a move would trigger further price rises of around 15 per cent by the other three major suppliers – E.On, Scottish & Southern Energy and Scottish Power – in the next two months, the analysts said.

..Keep a look out for more updates on energy bills.

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Average energy bill to hit £1000 per year

The New year was rumoured th bring price hikes for energy bills. NPower kicked start the domino effect by announcing that electricity prices for its domestic customers will rise by 12.7%, while gas bills will see a 17.2% increase.

The average family buying both gas and electricity from the company will find the annual bill soaring above £1,000.

Npower, the UK’s fourth-largest energy provider, said it had been “forced to put up prices” because of soaring wholesale energy costs.

Energy watchdogs demanded an investigation by the European Commission and the Competition Commission in this country to ensure there is no illegal price fixing.

Adam Scorer, campaigns chief at the consumer body Energywatch, hit out as the profiteering of the foreign energy giants.

“The big European energy companies treat Great Britain like Treasure Island,’ he said.
“They raid the UK’s North Sea for gas supplies when it is cheap but then levy punitive prices when demand is higher.

“This move suggests something is very badly wrong, not only in the GB energy market but in Europe as well. There is no actual shortage of gas across Europe, we have new pipelines to bring that gas to the UK, greater storage capacity and terminals to bring in supertankers full of liquefied natural gas.”

A drop in wholesale energy prices in 2006 and early 2007 had enabled suppliers to cut bills, with British Gas becoming the first major UK energy firm to announce decreases.

Npower dropped its prices at the end of April 2007 and, before today’s expected price increases, has been the fourth cheapest of the six biggest UK energy suppliers, according to price comparison site uSwitch.com.

But its average standard dual fuel bill now stands at £1,047 a year, up from £908, making it the most expensive provider, said uSwitch.com.

The site hit out at energy suppliers for being quick to pass on rises in wholesale energy prices, but slow to pass on cuts to customers.

Giuseppe Di Vita, managing director of Npower’s residential business, said that rival energy providers will follow suit with their own price rises “very shortly”.

….see following Blog on EDF Energy price hikes.

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