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February 17, 2006
British Gas increase energy prices by 22%
Against a backdrop of unprecedented increases in the wholesale cost of energy, caused in part by anticompetitive practices in Europe, Centrica plc is today announcing a change to its British Gas tariffs for domestic gas and electricity customers.
The cost of buying gas for 2006 is now 63% higher than in 2005 and some 202% higher than 2003(1). Wholesale gas prices in Britain are now the highest in Europe, yet consumers here still pay substantially less than in many European countries including Germany, France and Italy, where prices are also rising sharply (2).
As reported in Centrica's trading statement in December, British Gas's residential energy business made a loss in the second half of 2005 as a result of its decision to absorb a portion of the additional wholesale energy costs to reduce the impact on customers. Following the further substantial rises in wholesale energy costs British Gas has been forced to increase its gas and electricity domestic energy prices by 22% with effect from 1 March 2006. Even after these increases, British Gas continues to shoulder a portion of the burden of these higher wholesale costs.
Customers who have already signed up for Price Protection 2007 and 2010, some 2 million accounts, will not be affected by these price increases. Following the success of these offers, British Gas is today launching Price Protection 2009, enabling dual fuel customers to fix their energy prices until April 2009.
Mark Clare, Managing Director, said: 'The energy map is being redrawn with Britain now dependent on gas imports from Europe, a market the Commission says is seriously malfunctioning. Recent events in Russia have underlined how our energy markets are connected and this has served as a wake up call across Europe.
While there can be no guarantees in such a volatile wholesale market, we see no need for any further price rises this year, assuming the infrastructure is ready to deliver new gas next winter and that proper action is taken following the Commission's findings.'
Given these latest gas and electricity price increases, Energylinx would advise all customers regardless what supplier they are with to carry out a free independent energy price check as soon as possible. More than any time previously it is not definitely worth considering a fixed or capped price energy deal. Most importantly at this time also make sure that the comparison service is 100% impartial.
Domestic customers can either carry out a search for free using the most comprehensive energy calculators available in the UK by logging onto any of the following links or call Energylinx on 0800 849 7077 for a personalised quote. Energylinx will then send you a detailed domestic energy quote.
Energylinx are currently the only energy price comparison service, accredited by energywatch, that actually allow you to view and transfer to every single tariff available to your home.
These Energylinx calculators are unique in that they allow you to compare the prices of all energy suppliers.
Energylinx will arrange the whole transfer process for you, including notifying your existing supplier of any planned change and tracking the transfer to ensure that it occurs on time and accurately. Energylinx provides its services completely free of charge to the domestic consumer.
(1)Source: gas prices based on IPE data. Electricity prices based on Spectron Data and Heren Data
(2) Government figures before these latest increases show householders in France pay 37% more, in Germany 84% more, in Italy 107% more and in Denmark 187% more. (Source : DTI Quarterly Energy Prices Jul 04-Dec 05, based on pence/kwh)
Posted by energylinx at February 17, 2006 07:27 PM Technorati: Energy Prices
