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Energy Prices Cause Financial Issues

Written By On 16/03/2013

The energy watchdog Ofgem, are predicting around a 10% decrease in production by April because of the closure of power stations that are deemed to be too old.

UK consumers have been told to expect more price increases in the energy market as we become more and more reliant upon our gas imports.

British Gas announced an 11% profits increase just a few months after putting up energy prices for their customers. This has caused uproar from around the country and has made them understandably very unpopular. Consumer groups feel that the big six energy companies are the catalyst for driving the public into potential fuel poverty.

Co-operative Energy has now decided to raise their gas and electricity prices for new customers by up to 9%. Estimates suggest that this can drive the average price of a dual fuel energy plan to around £1,258 per annum. The company are blaming the rising cost of transporting energy which they say they have no control over. However they say that they will honour their price promise and nothing will change before 15 April 2013.

In a statement issued on 12 February 2013, the firm said:

We are owned by our customers, so we are not increasing prices to reward financial investors, but we have a duty to our members to run a sustainable business and if we didn't match the transport cost increases by putting up our prices by a similar amount, we would be selling energy at a loss, which is not sustainable.

Families that are struggling to pay their energy bills and are on benefits may be entitled to a 'crisis loan' via their local authority. These loans will be stopped at the end of March to be replaced by different types of loans. They will be issued to the most vulnerable.

SSE now offer the most reasonable standard dual fuel plan, at around £1,134 a year, closely followed by First Utility at around £1,150, Scottish Power at around £1,164, Sainsbury's Energy around £1,165 and Ovo Energy about £1,172.

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