A study carried out by Citizens Advice has found that by next month, the big six energy suppliers will have raised gas and electricity prices by 36% since October 2010.
The news is unlikely to endear energy companies to the British public as they prepare for yet another round of price hikes.
Five of the big six – British Gas, EDF, npower, ScottishPower and SSE have already announced or implemented price rises, with E.ON expected to follow imminently.
Average earnings have risen by 4.4%
Citizens Advice found that since October 2010, gas and electricity suppliers raised prices by an average of 36%. In stark contrast, average earnings have risen by just 4.4%. During the same time frame, research showed that energy prices rose by more than three times the rate of inflation.
It is worth keeping in mind that these figures have been affected by the economic crisis, which has significantly impacted salaries.
Citizens Advice said there was significant concern surrounding the growing number of people unable to maintain a decent standard of living due to the price hikes. The charity added that the amount of households asking for help had risen by 44% since the big six began announcing price rises.
‘More and more people are likely to reach crisis point’
Speaking on the rises, Chief Executive of Citizens Advice Gillian Guy said: “Enormous escalations in energy prices are creating a desperate situation in many households.
“People find they do not have enough money to pay for essentials as increases in daily costs are outstripping low rises in earnings. As we head into winter and the latest price rises begin to kick in, more and more people are likely to reach crisis point as they struggle to heat their homes and feed their families.”