thomas davison Party Leader
Joined: 03 Jun 2005 Posts: 4018 Location: northumberland
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Posted: Wed May 09, 2012 8:18 am Post subject: 15% GAS HIKE THIS YEAR ALONE NEVER MIND ALL THE REST |
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Gas and electricity prices are set to soar by an average of �500 over next four yearsBy David Derbyshire
UPDATED: 00:28, 14 May 2011
Cash-strapped families face a stinging 50 per cent rise in their gas and electricity bills in the next four years, analysts warned last night.
Typical household bills could leap by �500 a year by 2015 as suppliers pass on the costs of rising wholesale prices, broker Deutsche Bank says.
The warning comes two days after the Bank of England signalled more misery for homeowners with a likely rise in interest rates.
Sting: Gas and electricity prices are set to soar by 50 per cent in the next five years
And it follows an unprecedented squeeze on take home pay from tax rises, record fuel prices and meagre pay rises or pay freezes.
The hike in fuel bills is expected as Britain becomes more reliant on imported gas.
It will also be needed to pay for the new generation of nuclear power stations, the upgrading of the national grid and the creation of thousands of wind turbines to meet Europe�s tough climate change targets.
The prediction comes after Centrica � the parent company of British Gas � warned the wholesale price of gas and electricity next winter will be 25 per cent higher than last year.
Energy firms pay for their fuel months in advance and the price paid for fuel by households has yet to reflect the hike.
Deutsche Bank forecasts that the average dual-fuel bill could rise by 30 per cent to 50 per cent in the next four years � to between �1,300 and �1,600.
That would be between �170 and �470 higher than existing bills.
�Sharp increases would be needed in the next 12 months, with prices rising to record levels from 2013 onwards,� the analyst Martin Brough said.
If Centrica increases prices, other companies will follow suit.
Governor of the Bank of England Mervyn King has predicted gas prices will rise by 15 per cent this year
Energy prices are under investigation by Ofgem. In its initial report, published in March, the regulator said energy companies raised prices faster in response to rising costs than they cut them when costs fell.
It also threatened the industry with a referral to the Competition Commission if suppliers did not auction between 10 per cent and 20 per cent of their electricity output to allow smaller firms to enter the market.
The last round of fuel price increases ended in March when fuel bills rose by an average of six per cent, or �63.
However, the crisis in the Middle East and Japanese tsunami and nuclear disaster is expected to see costs go up even more.
Earlier this week the Bank of England Governor Mervyn King predicted a hike of up to 15 per cent in gas prices this year
RE-NATIONALISE NOW, TELL THE FOREIGNERS THEY CAN TAKE PAYMENT OUT OF THE BILLIONS WE HAVE PUT IN TO SHORE UP THEIR EURO, SIMPLES. AND WHILE WE ARE AT IT GET OUT OF THE EU AND HUMAN RIGHTS LAWS AND WATCH THIS COUNTRY RISE FROM THE ASHES. |
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