Industry analysts are predicting the next raft of price hikes will take effect at the end of this month.
Rumoured energy price increases will be kicked off by British Gas (www.britishgas.co.uk) in two weeks time according to industry insiders.
The price hikes, anticipated to be in the region of 15%, will be prompted by soaring wholesale energy prices, with gas prices having trebled over the past 12 months. The cost of gas is intrinsically linked to the price of crude oil, which leapt to a new record of nearly $146.69 a barrel yesterday.
Adding to the pressure on Britain's energy suppliers, wholesale coal prices were also driven to record levels last week.
Centrica, the owner of British Gas, finds itself especially stretched due to its reliance on paying premium prices for gas on the open market. Historically, Centrica has suffered from a shortage of its own gas and power supplies, and as result has to buy expensively from abroad.
BY Dan Drage
full article
Friday, 11 July 2008
'Green' car tax will hit poorest hardest
New "green" car taxes will hit hundreds of thousands of the poorest families, new figures show, as Labour backbenchers told the Government it was heading for a repeat of the 10p tax revolt.
About 400,000 of the lowest earners will pay an average of £80 a year more following changes to Vehicle Excise Duty (VED), according to calculations based on official Treasury data. Of those, 140,000 will pay at least £100 a year more in car tax and for some, bills will increase by up to £245.
This means that in total, Britain's poorest families - defined as those on an income of £15,000 or less - will pay a total of £32 million extra in VED in the next two years.
full article
About 400,000 of the lowest earners will pay an average of £80 a year more following changes to Vehicle Excise Duty (VED), according to calculations based on official Treasury data. Of those, 140,000 will pay at least £100 a year more in car tax and for some, bills will increase by up to £245.
This means that in total, Britain's poorest families - defined as those on an income of £15,000 or less - will pay a total of £32 million extra in VED in the next two years.
full article
Thursday, 10 July 2008
'Hundreds wasted' on energy bills
Households are wasting hundreds of pounds a year on gas and electricity bills - despite Government efforts to cut energy consumption, the Whitehall spending watchdog has warned.
The National Audit Office (NAO) said that while the Government is currently spending £2.6 billion-a-year on energy reduction programmes, household consumption has risen by 19% between 1990 and 2004. The increase came despite a 19% increase in household energy efficiency over the same period.
While energy consumption has started to fall since 2005, the NAO estimated that households could cut average bills by at least 30% - around £280-a-year for the typical household - if they adopted all the available cost-saving measures.
It pointed to recent surveys by the Energy Saving Trust which found that 71% of households leave electronic appliances on standby, 63% forget to turn the lights off in empty rooms, and 28% leave the heating on when the house is unoccupied.
At the same time, the NAO said that as the growth in consumer electronics, the emergence of more and smaller households and the tendency of people to keep their homes warmer had all helped to offset the gains in energy efficiency.
full article
The National Audit Office (NAO) said that while the Government is currently spending £2.6 billion-a-year on energy reduction programmes, household consumption has risen by 19% between 1990 and 2004. The increase came despite a 19% increase in household energy efficiency over the same period.
While energy consumption has started to fall since 2005, the NAO estimated that households could cut average bills by at least 30% - around £280-a-year for the typical household - if they adopted all the available cost-saving measures.
It pointed to recent surveys by the Energy Saving Trust which found that 71% of households leave electronic appliances on standby, 63% forget to turn the lights off in empty rooms, and 28% leave the heating on when the house is unoccupied.
At the same time, the NAO said that as the growth in consumer electronics, the emergence of more and smaller households and the tendency of people to keep their homes warmer had all helped to offset the gains in energy efficiency.
full article
Energy Saving Tips to cut fuel costs
With household energy bills on the rise, insurance broker Confused.com, is offering the following tips to help consumers to reduce their monthly payments for energy in their home:
Consider capping: the wholesale cost of energy is almost double what it was last year - Centrica's Interim Management Statement on 12 May 2008 admitted, "On average the month-ahead prices for gas and power were 92% and 100% respectively above those for the same period of the previous year. Against this backdrop all major energy suppliers increased residential energy tariffs during the first quarter of the year. Further increases in gas and electricity prices are expected, which means that now could be the time to switch to a capped-price tariff. If utilities companies up their prices again - and rises of between 10% and 20% have not been uncommon - that mediocre capped rate from your energy supplier could suddenly be very reasonable. If you need some consistency in your monthly spending, consider capped rates.
Check your appliances: if you are looking to buy the latest plasma screen, or American- style freezer, take a moment to read the booklet that comes with it. Some household appliances guzzle up electricity so it is worth having a look around your home to see if there are appliances which might be significantly increasing your energy bills.
Check your meter regularly: energy suppliers are only legally obligated to read your meter every two years, which means that your gas and electricity bills are based on what they think you might use up. Make sure that you check your meter on a regular basis and let your supplier know the reading. Their lines are often open 24-hours-a-day and they will amend your bill accordingly.
full article
Consider capping: the wholesale cost of energy is almost double what it was last year - Centrica's Interim Management Statement on 12 May 2008 admitted, "On average the month-ahead prices for gas and power were 92% and 100% respectively above those for the same period of the previous year. Against this backdrop all major energy suppliers increased residential energy tariffs during the first quarter of the year. Further increases in gas and electricity prices are expected, which means that now could be the time to switch to a capped-price tariff. If utilities companies up their prices again - and rises of between 10% and 20% have not been uncommon - that mediocre capped rate from your energy supplier could suddenly be very reasonable. If you need some consistency in your monthly spending, consider capped rates.
Check your appliances: if you are looking to buy the latest plasma screen, or American- style freezer, take a moment to read the booklet that comes with it. Some household appliances guzzle up electricity so it is worth having a look around your home to see if there are appliances which might be significantly increasing your energy bills.
Check your meter regularly: energy suppliers are only legally obligated to read your meter every two years, which means that your gas and electricity bills are based on what they think you might use up. Make sure that you check your meter on a regular basis and let your supplier know the reading. Their lines are often open 24-hours-a-day and they will amend your bill accordingly.
full article
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