Whole gas price 'at 12-month low'

08/08/11
Shane Gladstone

Reports have suggested that energy firm E.ON announced it was raising its prices on the same day that wholesale gas prices fell to their lowest of 2011.

The firm announced on Friday that from September 13 it will raise its prices for gas by more than 18 per cent and electricity more than 11 per cent - a move which will affect around five million people

But the Sunday Telegraph reported that E.ON's announcement - which followed similar moves by other big six suppliers - came on the day that wholesale day-ahead gas prices fell to their lowest point of the year, at 49.9p per therm.

Furthermore earlier last week, prices for electricity also fell to their lowest point, at £45.2 megawatts per hour.

Recent weeks have seen British Gas, Scottish Power and Scottish & Southern Energy announce price rises - much of which was in response to a 30 per cent rise in wholesale costs since last winter.

The moves have seen calls for the sector to be referred to Competition Commission amid claims of unfair rises.