Home energy costs 'could rise by 15%'
Posted on 4 January 2008 by
Four million people could find themselves paying around 15% more for their household energy, after the UK's largest electricity supplier announced it will be putting prices up.
Npower is yet to announce the exact hike in its gas and electricity prices, but the company recently increased the pricing of its online payment plan by 17% for new customers. Tim Wolfenden of uSwitch said: "The smart money is on a 15% rise."
Consumer groups fear that other energy firms are likely to follow npower's move, which comes as wholesale energy prices continue to rise. This week, oil reached a record $100-a-barrel price in New York trading.
"Consumers are always being softened up with talk of 'unavoidable' price rises," said Karl Brookes, spokesperson for the independent watchdog energywatch.
"The wholesale price for gas has risen, it's true, but all suppliers can decide to absorb more of that themselves rather than pass all the rise on to consumers."
In December 2007, the watchdog's chief executive Allan Asher criticised energy companies for failing to fully pass on a 50% reduction in wholesale prices over the previous year.
He added: "Gas is abundant; there is no scarcity or shortage of gas so there should be absolutely no need for its price to rise."
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