Energy suppliers face anger over price rises

Energy companies are set to impose another round of punishing price increases on consumers, despite a steep slide in the wholesale price of gas.

Scottish Power is among those expected to announce double-digit price rises for its 5.2 million gas and electricity customers in the coming days.

E.ON, npower and Scottish & Southern Energy (SSE) are also thought to be preparing further rises to household bills.

The increases will be particularly galling for British families already battling with rising mortgage, food and fuel costs, because they follow a sharp fall in wholesale gas prices.
The price of gas for delivery the following day has dropped 32 per cent over the past month, from 69p per therm in early July to close at 47p last night.

Forward gas prices have also fallen. The price of gas for delivery this winter has declined from 104p per therm last month to about 88p per therm.

The decrease has accompanied a near-20per cent drop in the price of crude oil, to which most commercial gas contracts are linked. That touched a high of $147 per barrel on July 11 and is now at about $118.

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