British Gas prices may increase again
13 May 2008
Higher wholesale prices could push energy bills up
Centrica, owner of British Gas, has indicated that energy bills could increase again because their profit margins are being affected by higher wholesale prices.
Centrica warned it may have to act after wholesale electricity costs doubled and wholesale gas prices increased by 92% compared to a year earlier.
In January this year, British Gas increased its gas and electricity prices by an average of 15% blaming rising wholesale prices for the move.
Despite these price hikes by British Gas, Centrica said its profits would be “materially lower” in the first half of this year.
The news of further potential price increases has not been taken well by the industry watchdog, Energywatch.
“For the fuel poor, it’s terrible news,” Allan Asher, chief executive of Energywatch told BBC News.
“Sadly if one company goes ahead and raises prices, others will respond,” he added.
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