British Gas Bill Hikes Slammed

By Jayne Davison
Published on 1 Aug 2008
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British Gas Bill Hikes Slammed

Strong criticism of the firm has been issued from groups including energywatch and Age Concern.

Vulnerable groups will suffer as a result of British Gas' decision to hike bills by up to 35 percent, it was claimed yesterday.

Britain's biggest energy provider, which retains around 16 million customers in the UK, was slammed by charities, consumer groups and financial websites for its decision - which it claims to have been forced into due to high wholesale fuel costs.

Lobbyists at energywatch, a group which monitors energy providers, termed the price change - which incorporates a 35 percent rise in gas prices and a nine per cent increase for electricity - as "massive". Adam Scorer, director of campaigns, added: "I’m not sure that many will be able to take [this] news in...high prices seem hardwired into this market for the foreseeable future. That hits the poor the hardest.

"The most important policy issue facing the government is how to protect vulnerable consumers from these hammer blows. So far [British Gas] has not taken the necessary steps to fight fuel poverty yet. It needs to act now."

Kate Green chief executive of the Child Poverty Action Group, also expressed anger over the "staggering" decision. "At a time when the cost of living is rising this is bad news for families and will cause further fuel poverty," she said. "Energy suppliers have a responsibility to those receiving their services - not just to their shareholders."

Criticism of British Gas' move also seems likely to intensify further in days to come, with a new profits declaration from its owners Centrica. The firm said today that net earnings are likely to hit £992 million for the first half of the year; moreover, Centrica also decided to raise its shareholders' dividend by 16 percent on the news.

Speaking to the Guardian, Patrick South at Age Concern commented: "Many pensioners will be shocked that while they are worrying about how to afford to heat their homes this winter, such significant profits are being made and shareholders are getting a substantial dividend."

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