Sunday, December 25, 2011

Households paying ?100 more a year for energy

The average domestic fuel bill will be ?1,175 in 2011, compared with ?1,075 for the same level of consumption last year, estimates from the Department of Energy and Climate Change show.

The department forecast that the actual change in bills was likely to be less than ?100, because average consumption has fallen due to the mild winter compared with last year?s cold conditions.

The rise reflects the soaring wholesale price of gas, which was pushed up by tightened supply during the instability of the Arab Spring and increased demand following the Fukushima nuclear plant disaster in Japan.

Energy companies raised their prices this summer in response to increased costs but have been criticised for their profit margins. For the typical consumption of 18,000 kWh of gas, household bills increased by ?62 to ?720. Electricity consumption of 3,300 kWh will have cost ?445 this year, up ?38 on last year, according to the figures, based on actual data for the first nine months of the year.

A spokesman for the Consumer Focus watchdog said an annual energy bill, charged at the new rates after this summer?s increases, would be ?1,294, ?160 higher than before the price rises. She said: ?Affording these bigger bills will be a major worry for many people this winter.?

A report in October by the regulator Ofgem found the profit margin for energy companies had risen to ?125 per customer per year, from ?15 in June ? though industry figures claimed that figure was misleading. The regulator said it would force suppliers to simplify tariffs as part of a drive to push down prices.

Chris Huhne, the Energy Secretary, has blamed lazy consumers for high energy bills, saying they fail to shop around for the best deals. Mr Huhne and David Cameron convened a summit of the UK?s largest energy suppliers and consumer groups in October to discuss how to make it easier for households to switch suppliers and save money.

Following the meeting, Mr Huhne said most of the big six firms had agreed not to put up their prices again this winter. But Phil Bentley, the managing director of British Gas, said household bills were likely to keep going up because the price of energy was rising.

Figures show families have been suffering a fall in living standards as soaring gas and electricity prices push up household costs.

Source: http://telegraph.feedsportal.com/c/32726/f/568387/s/1b33a7d5/l/0L0Stelegraph0O0Cfinance0Cnewsbysector0Cenergy0C89743450CHouseholds0Epaying0E10A0A0Emore0Ea0Eyear0Efor0Eenergy0Bhtml/story01.htm

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