Gas bills set to rise again May 12th, 2008

Centrica, the owner of British Gas, has signalled that utility bills could be on the increase again following increasing costs in the wholesale energy market. The wholesale cost of electricity has doubled since last year, while gas has risen some 92% over the same period.

British Gas has already increased retail prices by around 15% this year and a further increase is on the cards, some commentators predict by up to 30%. Whilst Centrica’s profits are expected to be lower than last years, the bulk of any price hikes suffered by Centrica are likely to be passed on to customers in order to support margins.

With increasing utility bills, petrol costs and rising food prices the British public are experiencing a real hike in the cost of living. Add in the impact of the credit crunch and the withdrawal of the 10p tax rate and it doesn’t paint a pretty picture.