Gas price hikes by major energy companies sparks anger among customers

British Gas announces an appalling 6% rise in gas prices which burdens around 8.5 million households with an additional £80 to the typical annual dual-fuel bill, or £1.50 a week. The gas price increase is double the rate of inflation.

Amidst the gas price hike, British Gas’ parent company announced that it expects to post £1.4bn profits this year, renewing anger among customers. Recently, suspicions have risen with regards to the public paying a fair price.

Earlier this week, watchdogs launched investigations into claims that wholesale gas prices are being manipulated by City traders to make millions. Six major energy companies have announced plans to hike gas prices. Centrica, SSE, Npower, EON, EDF and Scottish Power have all denied being involved in the price rigging.

Audrey Gallacher, Director of energy at the official customer body Consumer Focus, said, “Consumers will be sceptical over supplier profits, given questions over how justified recent price rises have been. Customers need to know that the relationship between costs, pricing and profits is fair.”

Labour’s energy spokesman Caroline Flint, said, “In the wake of the allegations about price fixing, the time has come for a complete overhaul of our energy market.”

In its defence, Centrica has put the blame on higher prices on the rising wholesale cost of gas and a slew of measures to fund the switch to green energy. Centrica said in a statement, “Like the rest of the industry, we have been faced with higher costs to help upgrade the UK’s gas and electricity grids and to deliver the UK’s carbon reduction targets, both in power generation and in the home.”

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