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Britain’s Green Madness: UK Energy Prices To Surge

Energy prices are set to surge by as much as 10% in the New Year – bringing fresh pain to millions of families.

Experts warned households to brace themselves for a rise of up to £115 – taking the typical gas and electricity bill to more than £1,300 a year.

A sharp rise in wholesale energy costs – up 62% since last December – means it’s almost certain that prices will go up, with the only question being when.

Meanwhile “green” levies, that account for around half the average bill, are expected to increase to fund Government energy efficiency schemes and a new wave of “clean” power stations.

In what could be a danger sign, two of the country’s biggest energy firms have quietly ditched their cheapest deals. EDF Energy replaced its Online Saver 6 product with one that is almost 7% more, while Npower’s latest Go Fix tariff is a whopping 18.5% more expensive than its predecessor. Mark Todd, director of the website, had a stark warning.

He said: “There seems to be an almost unstoppable upward trend in the market with prices creeping up remorselessly.”

Derek Lickorish, chairman of the Fuel Poverty Advisory Group, warned it could lead to a surge in “fuel poor” households – those spending at least 10% of their income on gas and electricity.

The number already stands at 4.6 million in England alone.

He said: “For every 1% increase in prices, another 40,000 households find themselves in fuel poverty. The Government and suppliers must do more.”

Daily Mirror, 17 August 2010