Millions of UK households face record high energy bills

Myra Butterworth Telegraph 06/07/2011 18:09

Millions of households were warned last night that they face “unacceptable” rises in their energy bills after one of the biggest power firms announced average increases of nearly £200 a year.

Scottish Power became the first of the six major suppliers to disclose a new round of price rises. It told five million customers that gas and electricity bills would go up by 19 per cent and 10 per cent respectively.

The increase, which will take effect on Aug 1, will push households’ average annual bills to almost £1,400; the highest level ever.

Other energy suppliers are expected to follow suit and increase their prices within weeks.

The announcement is a fresh blow to households whose budgets have been squeezed after repeated increases in inflation. The Bank of England has previously warned that rising energy bills are likely to be one of the main factors behind the continued rise in the cost of living.

The Spanish-owned company, which made an operating profit of approximately £800 million last year, blamed the increases on a “prolonged” rise in wholesale gas and electricity prices, which have jumped 30 per cent since November.

Experts said that the rise had been driven by increased demand for gas from Japan after the nuclear crisis in March. However, they pointed out that wholesale prices were still lower than three years ago during the financial crisis.

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