Consumers set for bleak future

A new statement published today by Centrica, the parent company of British Gas, has revealed the pricing pressure that energy suppliers are coming under and shows that British consumers could be in for a very bleak future, if rises in the wholesale cost of energy continue to rise.

Commenting on the statement, comparison website uSwitch is predicting that households could see a 10% price increase on energy costs by the end of the summer and an additional 15% rise in January 2009. For the average household, this would be a combined rise of around £270*. This is their better prediction, with worse case scenarios costing the consumer some £415** extra.

A spokesman for Uswitch commented that if British Gas were having to think about price rises then the other energy companies would also be thinking about it too. They are advising consumers to look at fixed price plans that could be a price stabilising factor for concerned homeowners.

* Average Dual Fuel bill size as at 1st Jan 2008 was £912, adding an 15% average price increase by 12th May 2008 increased bill sizes by £136, a further 10% will add £105 to make the average bill size £1153, and a further 15% will add £173 to make it finally £1326. Price rise prediction is based on analysis of the energy markets. Based on a medium user profile, consuming 20,500kWh of gas and 3,300 kWh of electricity per annum. Customer paying on receipt of bill, for standard Dual Fuel plans. Bill sizes averaged across all regions. Bill sizes averaged across the UK 'Big Six' energy suppliers.

** Average Dual Fuel bill size at 1st Jan 2008 was £1048, predicted to rise to £1327 by January 2008, a difference of £415. Average Dual Fuel bill size at 1st Jan 2005 was £662. A bill size of £1327 in January 2009 would therefore represent more than a doubling over this period. Based on a medium user profile, consuming 20,500kWh of gas and 3,300 kWh of electricity per annum. Customer paying on receipt of bill, for standard Dual Fuel plans. Bill sizes averaged across all regions. Bill sizes averaged across the UK 'Big Six' energy suppliers.