July 31, 2008
British Gas announces 35% price hike
Approximately, 4 million homes are expected to be hit by British Gas’ plans to increase its tariffs by an average of 35%. However, the energy provider stated that the increases would not affect the 341,000 customers who are thought to be most at risk from falling into fuel poverty.
Non-profit organisations and charities ,that normally provide advice to individuals and families who are already under financial pressure from the current credit crunch, pointed out that the energy increases could have a devastating effect on consumers. Britons are already finding that their finances are being squeezed by high food and mortgage costs.
British Gas’ announcement follows EDF’s move to increase its gas and electricity bills by an average of 20%. It is expected that the four remaining major energy suppliers - Scottish Power, nPower, Scottish and Southern Energy and E.on will increase their prices in the near future.
Centrica, the parent company of British Gas, also announced that it had made a profit of £992 million for the first half of 2008.