31 August 2005
Powergen is raising its domestic gas and electricity prices from today, by 12 per cant and seven per cent respectively.
It is the third time the company has raised its electricity prices, and the fourth rise for gas, since the beginning of 2004, affecting approximately 6 million people across the UK.
The company has attributed the latest increase to the continuing rise in wholesale energy prices, particularly the increasing price of oil, which doubled to a new high of $66 a barrel this year.
The increase in oil prices affects the associated cost of gas imported from Europe, which in turn increases the cost of gas-generated electricity for the UK's households.
In fact, the industry watchdog Energywatch said that the average household's energy bill had risen by approximately 20 per cent in the last year and a half.
British Gas is widely expected to announce a similar price rise in the near future, following the fourth consecutive rise from EDF Energy earlier this month.
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