UK gas nearly 90% more expensive than 2003
Households across the UK are now paying 87% more for gas and 56% more for electricity than they were in January 2003.
Millions of households were today facing the prospect of a further hike in bills as British Gas is due to increase tariffs by 12% on Monday.
British Gas owner Centrica told its 16.5 million customers in July that gas bills would go up by 12.4% and electricity bills by 9.4% on September 4.
It followed a 22% hike in energy bills by British Gas in March and was met with anger from consumer groups, charities and politicians concerned that pensioners in particular would struggle to afford the increases.
According to Energywatch, Monday’s move will make British Gas the most expensive supplier, with the average annual gas bill up 91% since 2003 to £707 and the average electricity bill up 81% to £428.
The suppliers have blamed the soaring cost of wholesale gas they have to buy from abroad to sell on to customers here now that the UK is a net importer of gas.
Supplies in the North Sea have been dwindling for years with the UK now covering 15% of demand from overseas. That figure is expected to rise to 50% by 2010 and 85% by 2020.
However problems with supply from Europe drove prices higher last winter and fears remain that gas could be withheld from the UK again this winter, despite calls from the European Commission and UK regulator Ofgem for a more open market.
