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Energy prices set to increase

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Energy prices set to increase
by Sune Nightingale
03 September 2012


Energy prices are due to rise again and many customers will face a double whammy as eight popular fixed deals expire this week. Scottish and Southern Energy have already announced a 9% rise for around 5 million customers and many other energy companies will shortly be doing the same.

As the fixed deals end hundreds of thousands of customers will find their bills rising by as much as 30%. At the end of October EDF and British Gas customers on fixed tariffs will also see a big jump in their charges as they too are returned to the standard rates.

All this is hard on those reliant on conventional fuels but great news for the energy companies. The energy regulator Ofgem estimates that the average profit margin on energy bills will rise by 44% over the next 3 months. Put that next to the fact that since 2005 the proportion of income after tax spent on energy bills has gone up by 50%, and closer to 60% for the over seventy fives, and you could almost suspect that the energy companies are in it just for profit and care not a fig for their customers.

If there was ever a good time to save money by buying a woodburning stove, and loosen the deadly grip that the energy companies have on your wallet, then this is it.


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