Record energy bill warning as British Gas highlights higher costs

 

British Gas paved the way for more pain by revealing that wholesale gas costs for next winter have risen by 15%

ENERGY bills could rocket to a record high this summer with prices soaring by nearly a fifth, experts have warned.

British Gas paved the way for more pain yesterday by revealing that wholesale gas costs for next winter have risen by 15%.

On top of that, suppliers will be forced to pass on other costs outside their control of around £50 per household.

British Gas, the country’s biggest supplier, said: “The trend for retail energy costs therefore remains upwards.”

Mark Todd, director at the website Energyhelpline.com, said: “From what we are hearing, other suppliers are under similar pressures, so price rises across the board are very possible.

“Wholesale gas increases of 15% typically translate to bill increases of 10%, so we could expect the average bill to rise by around £80 a year.

“On top of this, British Gas has also said that other costs have increased by £50 per household. In total, this would translate to a £130-a-year, or 19%, gas price rise.

“This would take the average UK gas and electricity bill to nearly £1,500 a year, the highest ever.”

British Gas announced a 5% cut in electricity bills in January.

But this followed a 16% hike in electricity prices and an 18% rise in gas prices last August.

The supplier is expected to grow profits by around 13% to nearly £600million this year after slashing costs, including hundreds of jobs, and despite a mild winter reducing demand for gas and electricity.

Owner Centrica benefitted from higher wholesale prices last winter, as it is a major producer.

Finance chief Nick Luff defended higher profits, highlighting the £1.4bn of investment announced recently to guarantee supplies.

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