All big six energy firms have now increased prices
Earlier this year the UK’s big six energy firms increased the cost of gas and electricity usage, stating that the rising cost of wholesale energy was forcing them to increase costs for customers. With household budgets already suffering the rises came as a blow to many. However, the situation was made worse by the fact that soon after energy firms announced that prices would have to go up again in late summer or autumn, again due to wholesale energy costs.
As promised the big six have now all increased their energy prices, with the latest of the energy giants to announce their prices rises being Scottish Power and N-Power. Over recent weeks the other four energy giant, E-On, British Gas, EDF, and Scottish and Southern Energy have all increased the prices on their gas and electricity usage. The latest round of hikes will push a rising number of people into fuel poverty, where 10% or more of their total household income is spent on energy bills.
Following the announcement Willie MacDiarmid, Scottish Power’s director of energy retail stated: “These are difficult times and we understand the financial impact this announcement will have on our customers.”
Also after announcing the rises an official from N-Power stated: “Today’s price rises are due to massive increases in wholesale costs which make current pricing levels unsustainable, following a price decrease in 2007 and an increase at the start of 2008. Until today Npower’s domestic gas prices were still the same level they were 18 months ago – whereas, during this time, the cost of wholesale gas has doubled.”
He added that electricity costs had been directly affected by “soaring raw material prices, which have risen by 122% for gas and coal, and 79% for oil, over the last 12 months”.
