Millions of families face soaring gas and electricity bills this winter as energy giants prepare to boost profits

| September 29, 2012 | 0 Comments

By
Rachel Rickard Straus

07:35 EST, 29 September 2012


|

07:35 EST, 29 September 2012


Rising bills: Households will find themselves paying more for heating their homes over the winter months

Rising bills: Households will find themselves paying more for heating their homes over the winter months

Households across the UK could see their gas and electricity bills soar this winter as energy companies prepare to boost profits from households, it has been reported.

Firms are set to increase profits from households from £45 to £65 – a jump of almost 50 per cent, according to the Daily Telegraph.

Britain’s second largest energy company SSE has already confirmed that the price of a typical dual fuel bill will rise by nine per cent from mid-October, up from £1,172 to £1,274 a year.

The increase will affect as many as five million households.

British Gas  – one of the ‘big six’
energy companies – has told 10 million households that their bills could
go up by as much as £100 next year.

Earlier this month Scottish Power and First Utility also pulled their cheapest fixed rate deals. 

The removal of these tariffs
has left consumers with a dwindling range of options that offer both the
peace of mind of a fixed price coupled with no exit penalties.

Experts have warned the average
annual energy bill could rise by £118 to a record £1,428 next year, the
Daily Telegraph reports.

Mark Todd, a director at
Energyhelpline.com told the paper: ‘From what we are hearing in the
industry, price rises are already being worked out.

The Bank of England dashed hopes that
bills would fall earlier this month, predicting instead that gas and
electricity bills could rise by an average of 2.5 per cent ‘around the
turn of the year’.

Tom Lyon, energy expert at
uSwitch.com, warned as the cheapest rates started to disappear: ‘Consumers who want to fix their energy prices cannot
afford to hang around – these deals are flying off the shelves and
could be pulled at any time.

Warning: British Gas has told 10 million households their energy bills could jump £100 next year

Warning: British Gas has told 10 million households their energy bills could jump £100 next year

Pledge: Labour leader Ed Miliband

Pledge: Labour leader Ed Miliband

‘People
have quickly grasped that paying a low price today, coupled with a
price guarantee and no exit penalties makes fixing your prices a real
“no brainer”.

‘It gives
absolute peace of mind coupled with flexibility, vital for consumers as
we head into what could well be a winter of price hikes.’

Labour leader Ed Miliband will pledge today to crackdown on profiteering energy companies.

They will be forced to pass on wholesale price
cuts to customers by an incoming Labour government, Mr Miliband will
tell a gathering of voters in Manchester.

He intends to axe the regulator Ofgem and introduce a new watchdog to order energy giants to reduce their prices.

He
is quoted in the Daily Telegraph: ‘The current system of regulation is
not working. We’ll rip it up to stop you getting ripped off.

‘We will make sure that when the big companies pay less for the power they buy, you pay less for the energy you buy.’

Mr Miliband will tell voters: ‘You know what it’s like when the envelope hits the doormat with the gas bill or the electricity bill.

‘The companies know you can’t choose not to pay it. They are making us pay more than we should.’

At this week’s party conference, shadow energy
secretary Caroline Flint will formally launch Labour plans to
organise mass bargaining for energy bills.

The comments below have not been moderated.

Miliband is electioneering. He knows all too well that energy companies are global organisations and one way or another they will get around anything he cares to throw at them. They will always find a reason not to reduce their prices, like, ‘ you want us to improve the infrastructure, you want us to get “greener “, all that costs money. ‘ ‘ You can have one or the other but you can’t have both – your move !’

Ed
,

Southampton,
29/9/2012 16:18

Oh ye ! Thanks very much BUT can you please tell us what the **h you did when you were in powere for 13 years? People do remember you know !

hari BABU60
,

HARROW, United Kingdom,
29/9/2012 16:02

It all started with the huge yearly escalating profits the banks were making year on year so then, other companies thought their profits should be higher just because, so started to do the same, thats the only reason, PURE GREED.

Alan
,

Huddersfield,
29/9/2012 15:50

How is the BOE going to control inflation if firms like these hike up their prices? Raising interest rates will affect us all and you will still have the same higher price. Increase your prices year on year to the tune of 1-3% a year , that I can understand but 50%? That’s daylight robbery.

ineedabailout
,

londonpavedwithgold,
29/9/2012 15:16

nationalise, nationalise, nationalise

Manminder
,

London,
29/9/2012 14:46

Energy bills increasing whilst wholesale prices are falling = yet another rip off Britain.

– NG , France, 29/9/2012 14:02 All together now… but this energy was bought when wholesale prices were high
But good to know inflation is well under control..

Aggrieved pensioner
,

Manchester,
29/9/2012 14:43

You have to give it to British Gas, their innovative scheme of hyping up their standing charges, before a unit of energy is consumed, is clearly driven by recent higher energy wholesale prices – billions of pounds profit made without supplying anything, ingenious!

Paul
,

Somerset,
29/9/2012 14:20

Aren’t we lucky all the chickens seem to be coming home to roost at once. Perhaps following privatisation the shares should have had to remain in British ownership or something similar. Utilties must have once been considered an important basic essential human right or at least important enough to be state owned with prices adjusted accordingly. They were badly run and ruled by the striking unions in the 1970s and then privatised in the 1980s but that was a very long time ago and its only now in recent years that prices seem to be escalating rapidly and in the middle of the worst recession in living memory – whyt and how can that be?

Sally
,

London, United Kingdom,
29/9/2012 14:19

Energy bills increasing whilst wholesale prices are falling = yet another rip off Britain.

NG
,

France,
29/9/2012 14:02

And you all voted for privatisation !!!!! Thanks for ****ing it up for the rest of us !!!! Be ashamed of yourselves. And there was me thinking that it was only governments of this country that were short-sighted. Obviously most people are too.

gary
,

stevenage, United Kingdom,
29/9/2012 13:58

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