21 April 2008
Gas and electricity prices could be set to rise by 25% this year, because of hikes in the wholesale markets, it has been claimed.
Firms were warned last week that Britain is having to import more of its energy and this means charges will be increased, reported the Observer.
Gassco's Executive Vice President Thor Otto Lohne told a recent seminar that the UK is trailing behind other locations when it comes to favourability.
In response to the claims that prices will rise again after similar increases earlier this year, Chief Executive at energywatch Allan Asher stated that consumers would find it hard to cope with such alterations.
"Price rises on such a shocking scale would be catastrophic for consumers. It suggests the market is being talked up to prepare the ground for more pain for consumers," he commented.
Last week, the Spanish firm Iberdrola was linked with a move for British Energy, which is currently part owned by the British government.
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