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Gas bills could rise by £400 a year

July 30, 2008 by admin  
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According to a recent report the cost of energy could soar by a massive amount, which could add around £400 on the average annual gas bill, which will add further strain to household finances. It is thought that bills could rise by as much as 40%, with a further round of price hikes due to take place in the autumn. Energy suppliers have already increased prices once this year, with pretty hefty increases that were brought in at the beginning of the year.

Some officials think that the price hikes will take place before Christmas although others are predicting that the price hikes will take effect over the next twelve months. Others think that the next round of price hikes will be announced in the coming weeks. Household finances are already suffering due to increased costs such as mortgage costs, higher bills, soaring petrol prices, and rising food prices, and these energy hikes are likely to put further strain on households.

In a separate report the Fuel Poverty Advisory Group, which was set up by the government, has said that the government may need to find another £4 billion over the next eight years in order to tackle fuel poverty, which is where a household spends over 10% of its total income on energy bills. This is a problem that the government has been promising to tackle, with plans to eliminate fuel poverty, but its own advisors are now stating that it will be far costlier than they had originally thought.

An official from the advisory group stated: ‘We reckon it should pay an extra £500m a year over the next eight years to achieve its target.’ This could further fuel rows between the government and energy companies over who will provide funding to try and pull more vulnerable consumers out of fuel poverty.

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  1. No change to mortgage crisis says:
    July 30, 2008 at 8:58 pm

    [...] Gas bills could rise by £400 a year [...]



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