Price of Gas Could Soar By Up to 70%

By Tim Lewis

GAS prices could soon rocket by as much as 70%, taking household bills to more than pounds 1,000 a year, a new report has warned.

The independent report, commissioned by British Gas’ parent company Centrica, was produced by analysts Eclipse Energy.

It claims the UK will have to become more reliant on imported energy, which has been badly affected by the spiralling cost of oil.

Jake Ulrich, managing director of Centrica Energy, admitted people were going to be hit hard by the changes, leading to a “potentially significant” rise in the number of people in fuel poverty.

He said: “I do think we will see people change their behaviour. I think people will use less energy and I hate to go back to the Jimmy Carter days in the US but maybe it’s two jumpers instead of one.

“People will change the temperature they keep in the house, they’ll be more cognisant of energy waste; they’ll buy better appliances.”

Figures released by energy watchdog Energy watch highlight the steady growth in fuel prices since the start of the year.

On January 5, npower increased its domestic retail prices by just over 17%, closely followed by EDF Energy, which increased its gas prices by nearly 13% from January 18.

British Gas put up the price of gas on January 18 by 15%and on February 2 Scottish Power increased the price of gas by 15%.

A week later E.ON put up the price of gas by 15%and Scottish and Southern Energy announced in March that the price of gas would increase by nearly 16% by April 1.

Last night a spokeswoman for Swalec, one of Wales’ largest energy suppliers, said: “Nobody knows for sure just what is going to happen to energy prices because there is so much uncertainty in the market.

“We have always taken a responsible approach to pricing, reducing prices when possible. We were one of the last to raise our gasprices this year (by15.8%)but we are still the cheapest in many areas.

“We are constantly monitoring our prices but in the short term there is no plan to raise them again.”

Energy Retail Association chief executive Duncan Sedgwick said: “Undoubtedly there is pressure on prices at present, with the price of oil and wholesale gas rising so significantly.

This has clearly led to a lot of speculation on how retail prices will be affected.

“Ultimately, Britain is no longer an energy island and we are much more exposed to the global energy markets than ever before.

“It looks like the era of cheap energy is over. However, if you are worried about paying your energy bills it is very important that you speak to your energy supplier without delay and find out what assistance may be available.”

John King, managing partner of Eclipse Energy Group, added: “This report signals the significant change which the UK will go through over the next few years.”

We have some advice on surviving the energy crunch this winter – buy yourself a Welsh jumper

Scrumper Jumper for men, available in five colours, pounds 55 from Howies

Stripy knitted top for women, pounds 55 from Howies

Grown On Neck Sweater in damson, pounds 45 from Toast

Ruby three-quarter sleeve frill front jumper, pounds 45.

Kingfisher frill front jumper, pounds 40. Both from Laura Ashley

And if you need to resort to slippers too, here’s our recommendation:

Melin Tregwynt house slippers available in mondo berry, madison grey, madison spice & mondo gold. Price pounds 32

(c) 2008 Western Mail. Provided by ProQuest Information and Learning. All rights Reserved.