LoCO2, one of the nation’s smaller energy suppliers, has announced price rises which put up bill prices for its customers by an average of 9%.
Industry analysts expect the UK’s larger firms, to raise their prices by a similar amount in the run up to winter.
The increase comes at a time when energy prices are very much at the centre of public debate. Labour leader Ed Miliband, recently pledged to freeze energy bills for a period of 20 months, if elected in 2015.
Adding to public concerns is E.ON’s recent decision to pull their StayWarm tariff for pensioners, arguing that Ofgem’s regulations no longer allow the company to offer more than four tariffs.
Rise due to ‘big increases in costs’
Bob Middleton, chief executive of LoC02, has blamed the increase on rising costs within the energy industry.
Speaking on the issue, Middleton said: “The whole industry has been facing big increases in costs since April when various higher charges came in. There was a 35% increase in the renewable obligation, 300% increase in the feed-in tariff and 5% in commodity costs. The biggest rise came from the commodity costs, leading to an overall rise for us of 10%.”
Middleton added that the big six energy firms – British Gas, E.ON, EDF, npower, Scottish Power and SSE – could delay implementing price rises due to the aggressive political climate.
LoC02 currently supplies energy to roughly 3,000 households in the UK.