16 September 2008
Household gas and electricity bills could rise even further as a result of the government's £1 billion energy deal, it has been claimed. Last week, the Prime Minister said energy companies had agreed to pay for free insulation for pensioners and low income families. They will also provide discounts for around six million other households looking to fit loft and cavity insulation to make their homes more energy efficient. Gordon Brown insisted the cost of the programme would not be passed on to consumers though higher bills. However, the Times reports that critics have argued it is naïve of the Prime Minister to believe this will not happen, insisting middle class families will end up paying for it. And David Porter, the Chief Executive of the Association of Electricity Producers, which represents energy providers, insisted: "Whenever people impose costs on an industry, the bill to some extent always ends up with the customer." The UK's six major energy companies have all increased their gas and electricity prices twice this year, with the most recent increases coming ahead of the winter months.