British Gas today warned of soaring prices as families were told to prepare for a £400 rise in annual bills.
Energy bills could go up by as much as 40 per cent because of massive increases in the cost of oil, gas and coal on global markets. Centrica, the parent company of British Gas, today released a trading statement in which it said it would “reset residential prices”.
The company, which made £1.95 billion profit last year, claims its earnings are being hit by the wholesale price of gas and oil.
It said it had no option to push up household prices for gas and electricity if it were to keep its profits up.
Warning that operating profit will be down this year, Centrica said in today’s statement: “Wholesale gas and power prices in the UK remain stubbornly high.”
The news of higher bills is another blow to families already struggling with the higher cost of mortgages, rising grocery bills and soaring petrol prices.
It creates more uncertainty in the economy as inflation rises and the Government struggles to keep a cap on wage rises following the 14pc pay deal struck by Shell tanker drivers.
Energy minister Malcolm Wicks admitted that significant increases in gas and electricity prices are “very, very likely”.
Asked if he agreed with the predicted rise of 40 per cent, or £400-a-year, he said: “I’m worried about the scale of it. I can’t give you a figure because actually no-one knows.” He also rejected claims that the UK was facing particular difficulties, saying: “Our prices for electricity are still lower than in many parts of Europe.”
8 Comments
‘The company, which made £1.95 billion profit last year, claims its earnings are being hit by the wholesale price of gas and oil.
It said it had no option to push up household prices for gas and electricity if it were to keep its profits up.’
What a load of crap, so we are going to struggle so they can make massive profits?
household bills going through the roof talking about roofs my mate cannot give his house away no views in the last three months he fears repossession now what a state we are in and its going to be like this for another three YEARS
Is there no end to the profiteering of these energy companies. How can they justify rises on this scale with the profits they make.
Will the price reduce when and if oil prices come down
the prices won’t come down there happy making money out of us, i’m already living in my overdraft because of all bills i’ve cut all my outgoings and still find it difficult to fuel my car pay my elecltric bill and now getting red letters demanding i pay my water bill i can’t afford all this and bring my son up ???? no help at all from the goverment there the same as British gas profit before people.!!!!
The people get the chance to change things and they cant be bothered, there were local elections recently and the few people of Sandwell that voted still voted in the same people, live with it and pay up.
If there was an election tomorrow, 70% of the people moaning about the state of the country wouldn’t vote, many, because they are too idle, many because they cant relate what is happening to the country, to the actions of the British Government.
I have to admit it wasn’t all the present governments fault, Maggie sold off the North Sea Oil Industry, that would have helped us to offset some of the effects of the increasing price of oil.
Everyone could see what is happening to the country yet they sit back and wait for someone else to do something about it.
Don’t waste your time moaning now, its too late, just buckle down the hatches and get ready for a bumpy ride.
Jim of Bearwood
The energy companies are purpously saying there will be an increase of 40%. they are doing this so that when at a later date they tell us that they have managed to keep the increase down to 20% we will all heave a big sigh of relief and think they are wonderful.
When really they could have kept the increase originally down to 5% and therefore make a massive bonus of 15%.
Don’t believe a word they say.
PUSH IT UP…and watch everyone die of cold why dont you.
British gas are nothing more than thieving dogs.
Who cares about your damn profit.Serve us the people of this country.
I left British Gas over 10 years ago…and im glad i did.It took them 2 years to stop sending me bills despite using another provider.2 years of letters,threats to take me to court,cut me off the idiots just would not be told.When we finally went to court 29 months after id left…the judge took one look at the contracts..dismissed and i was awarded over £400 for harrasment..not alot but i was having a bit of their profit..Lovelyyyyyyy..hahah
Since 2003, electricity and gas has gone up by approximately 100%. So that’s an average of 20% increase per year for the last 5.
Fuel has gone up by 60%. An average of approximately 12% per annum for the last 5 years.
Food prices have increased by increased by an average of 12% over the last twelve months.
The cost of borrowing has gone up by 6% over the last year.
So, the gobment is saying that inflation is predicted to be 2.1% in 2008.
Now, my maths is terrible, but I’m getting the impression that someone is lying.
Add to that the fact that our gold reserves where flogged off at knock-down prices.
The gobment is on target to borrow over 40% of gross domestic product this year.
The country is heading rapidly into recession, whilst all the other EU countries are riding it OK because of their financial RESERVES.
The US economy is doing much better than the UK, even though the UK slowdown is being blamed on the US and a global slowdown.
Yes, the oil-linked gas prices is a disgrace and a scandal, but the EU is doing nothing about it, the gobment hasn’t the balls to do anything about it, but they still choose to lie to us.
Makes yer sick dunnit?