More UK energy firms 'to hike prices'
Two more major energy suppliers in the UK plan big increases in the price of gas and electricity over the new two weeks, it was reported today.
Eon and Npower, two of the “big six” suppliers and with 15 million customers between them, are planning steep rises in their tariffs to offset higher wholesale gas and power prices, the Sunday Times reported.
Last week, Scottish and Southern, which owns Southern Electric, Swalec and Scottish Hydro, became the third of the major suppliers to raise prices this year when it increased gas prices by an average of 18% and electricity prices by 11% from September 14.
The increases, which means a typical annual dual-fuel bill rises by £171 per year to £1,265, were blamed on higher wholesale gas prices, a higher cost of using energy networks and the cost of social and environmental schemes.
Scottish and Southern’s decision followed earlier announcements by Scottish Power and British Gas to raise their prices by similar amounts and sparked more calls for an investigation into the way energy prices are set for households and small businesses.
Shadow energy secretary Meg Hillier called on the Government to launch an official inquiry.
“David Cameron cannot continue to sit on his hands whilst bills soar. The Government must call in the Competition Commission,” she said.
Watchdog Consumer Focus’s chief executive Mike O’Connor added: “Suppliers point to rising wholesale costs. Yet although wholesale prices have risen recently, they remain around a third lower than their 2008 peak.
Npower, which supplies 6.5 million customers, lost money on its retail business last year according to the latest figures from regulator Ofgem. Since 2010, prices for wholesale electricity and gas markets have risen by 23% and 40% respectively, Scottish and Southern said last week.
German company RWE owns Npower but was recently said to have put its future under review with investment bankers hired to consider a possible auction of the company.
