British Gas puts energy bills up

8 July 2011 Last updated at 11:31 GMT British Gas director Ian Peters said the rises were fair and justified

British Gas, owned by Centrica, is putting up its domestic gas and electricity prices from 18 August.

Gas bills will rise by an average of 18% and electricity bills by an average of 16%.

The change will affect nine million households with the average dual fuel customer paying an extra ?190 a year.

The company blamed the rising wholesale cost of gas, which has gone up by 30% since last winter.

British Gas managing director Phil Bentley said its bills were being driven higher by the fact that the company buys 50% of its gas on the international wholesale market.

"We are buying in a global energy market and have to pay the market rate," he said.

"Rising wholesale costs is an issue facing all energy suppliers," he added.

The company said it had been selling energy at a loss for the past three or four months.

"After we put these prices up we will be making a fair return," Ian Peters, a British Gas director told BBC News.

"We are investing in the future energy supply of the UK... and energy efficiency in our customers' homes," he added.

'Healthy profits'

Centrica had already warned that it was likely to raise prices this year.

In May, the company said its customers were not paying enough to reflect the increased cost of gas on the wholesale markets, and that this would depress its profits for the first half of the year.

But this argument was rejected by Mike O'Connor, the chief executive of Consumer Focus.

"Wholesale costs have gone up but they are still around a third lower than their 2008 peak," he said.

"Yet in this time British Gas' prices alone have risen by around 44% on gas and 21% on electricity and suppliers have made healthy profits."

Last year, British Gas' residential business made ?740m.

Spending squeeze

In June, Scottish Power became the first of the big-six energy suppliers to announce another set of price increases.

It said it would raise the cost of gas by 19% and the cost of electricity by 10% at the start of August.

The latest increase in energy bills, which is likely to be followed by other big energy suppliers, comes after a round of increases last winter which saw British Gas put its charges up by 7% in December.

"Average household bill for a dual fuel British Gas customer will now go up from ?1,096 to ?1,288," said the price comparison service Uswitch.

"In total, British Gas customers will have seen their bills shoot up by ?258 or 25% within a year, taking them from ?1,030 a year to ?1,288," Uswitch added.

Richard Lloyd, of the consumers' association Which?, said the energy firm's announcement was an unwelcome move.

"Many people are already having to cut back on essentials because of the rising cost of living, and with energy bills rising further, this could be a cold winter for many," he said.

The Energy and Climate Change Secretary, Chris Huhne, said the increasing burden of energy bills highlighted the need to move away from generating electricity by burning gas and coal.

"The UK electricity market has to change, so that we escape the cycle of fossil fuel addiction," Mr Huhne said.

"Alternatives like renewables and nuclear power must be allowed to become the dominant component of our energy mix. "

View the original article here

Huhne urges energy supply changes

12 June 2011 Last updated at 04:45 GMT Scottish Power's rise in prices could be followed by other major suppliers Consumers should vote with their feet and switch to a different supplier if their power company raises its charges, Energy Secretary Chris Huhne has said.

In an interview with the Observer, Mr Huhne said people did not have to take price increases "lying down".

He urged people to hit firms "where it hurts" by finding a cheaper supplier.

Scottish Power has this week announced big rises in gas and electricity prices and there are fears the other five major suppliers will follow suit.

Mr Huhne said: "Consumers don't have to take price increases lying down. If an energy company hits you with a price increase, you can hit them back where it hurts - by shopping around and voting with your feet."

Mr Huhne is expected to announce new measures this week to make it easier for smaller companies to compete in the energy market.

He said: "Right now, only one in five people switch suppliers. I want to see more switching, more competition and more companies in the market.

"The big six only have a few minnows snapping at them, who are kept artificially small. By scrapping red tape for small players they can become serious challengers and help keep bills down."

'Deep concern'

On Tuesday Scottish Power revealed price increases of 19% for gas and 10% for electricity from 1 August, affecting 2.4 million households in the UK.

The company blamed the rises on a sharp rise in the wholesale cost of gas.

Scottish Finance Secretary John Swinney has called for talks with the supplier over the move.

He said: "I am deeply concerned at the scale of Scottish Power's price increases and I am seeking an urgent meeting to hear why they think increases of this scale are justified.

"Any fuel price rises have an impact - yet these increases will leave many households, in particular vulnerable consumers, in real, real difficulty."

A spokesman for Scottish Power said the company always co-operated with parliamentary requests and it looked forward to the meeting with Mr Swinney.

View the original article here

Meeting urged over energy bills

12 June 2011 Last updated at 09:38 GMT Scottish Power's price increases are expected to affect 2.4 million customers across the UK Finance Secretary John Swinney has called for an urgent meeting with Scottish Power over energy price hikes.

The utility firm announced last week that it was raising the cost of gas by 19% and the cost of electricity by 10%.

The move is expected to affect 2.4 million households in the UK.

Mr Swinney has also urged energy regulator Ofgem to bring forward action to protect vulnerable customers and make the energy market more transparent.

Scottish Power is blaming a 30% rise in the wholesale cost of gas since last November for the price increases, which are due to come into effect in August.

A spokesman for the company said: "We always co-operate with the government. We look forward to a meeting with Mr Swinney."

The Scottish government has estimated that if Scottish Power's price increases were replicated by other suppliers, more than 900,000 households would be in fuel poverty.

Mr Swinney said: "I am deeply concerned at the scale of Scottish Power's price increases and I am seeking an urgent meeting to hear why they think increases of this scale are justified.

"Any fuel price rises have an impact, yet these increases will leave many households, in particular vulnerable consumers, in real, real difficulty."

The finance secretary said the Scottish government was only able to do so much to mitigate price rises, and confirmed he had asked Ofgem to update the government on its actions to address the issue.

He added: "These latest price shocks yet again underline why it is vital to go faster and further to secure our future as a green energy powerhouse and source all of our electricity needs from renewables by 2020, creating a secure, diverse future energy mix."

View the original article here

Energy plan protesters at Senedd

24 May 2011 Last updated at 12:29 GMT Protesters say there should be a ban on any further wind farm construction until planning guidance is reviewed

Around 1,500 people objecting to controversial power and wind energy plans in mid Wales have gathered for a protest in Cardiff Bay.

Four campaigners against a network of pylons have ended a six-day walk from Welshpool, Powys, and have been joined at the Senedd by wind farm opponents.

Dozens of pylons, some measuring 154ft (47m), and a substation are earmarked to connect with about 10 wind farms.

The Welsh Government said it was determined to cut carbon emissions.

Politicians from the four main parties in mid and west Wales, including Montgomeryshire MP Glyn Davies, who called for the protest, were addressing the crowd in Cardiff Bay, and three petitions will be handed to the Welsh Government.

Protesters are opposing plans for dozens of pylons and a substation

In 2005 the Welsh Government unveiled seven areas across mid and south Wales, known as Tan 8, which had been chosen for wind farm development.

In mid Wales, it could mean a line of 50 metre (164ft) pylons carrying 400,000 volt electricity cables from Montgomeryshire to near Shrewsbury.

Tan 8 was part of the UK Government's energy policy to increase the amount of electricity from renewable sources to 10% by 2010, but Wales has exceeded this and produces about 13%.

'Economic error'

Mr Davies compared the plan to the flooding of Tryweryn, near Bala, where a reservoir was created in the 1960s to provide water for Liverpool.

"If the assembly members who are here now allow this project to go ahead we want them to know that in half a century they will be remembered," he said.

"This is our Tryweryn and we are going to fight and they will be remembered if they carry on."

Continue reading the main story

We believe a small number of wind farms clustered in strategic areas is better than a large number of smaller wind farms across Wales”

End Quote Welsh Government spokesman Addressing the protesters, weather presenter Sian Lloyd added: "Some people in this rather attractive building here want to destroy magnificent mid Wales.

"Are we going to let them turn rural Wales into one gigantic power plant?"

The Welsh Government said it was "determined to see Wales cut its carbon emissions and use more renewable energy".

A spokesman added: "As well as wind - biomass, marine and micro generation sources, all have their part to play.

"Our planning policy, informed by independent research, identifies seven areas for the development of wind farms to minimise the proliferation of large scale wind farms. We believe a small number of wind farms clustered in strategic areas is better than a large number of smaller wind farms across Wales."

He said all planning applications for wind farms were subject to a strict planning process which considered "their impact on the environment, and local community".

Green solution

Nick Larder, 54, one of the four campaigners who started walking from Welshpool last Thursday, said they had received "massive support" along the route.

"There are lots of green solutions out there, but wind power is nothing to do with a green solution," he added.

Fellow walker Ifan Davies, 29, said: "Wind power only works on a local scale. It doesn't work on a national scale."

The National Grid urged people to take part in the public consultation process which has been extended until 20 June.

Wind turbines have long faced criticism from some local people, but complaints have grown since plans were unveiled for a 19-acre substation in Powys, and dozens of pylons.

View the original article here