Monday 9th June 2008
Energy prices may rise by as much as 40 per cent in the coming months, according to experts.
The Observer reports an anticipated 43 per cent hike in gas bills and 21 per cent rise in electricity costs.
Joe Malinowski of utilities market analyst The Energy Shop explains that the trend could emerge following rapid increases in wholesale prices.
"The last time wholesale gas prices broke above retail gas prices was three years ago in June 2005," he tells The Observer.
"In the following 18 months energy bills rose by a record 47 per cent."
He adds that, should a similar result occur this time around, the increase in monetary cost to customers could be even greater.
The publication contends that average gas and electricity bills would need to rise to £500 more than a year ago in order to strike a balance between wholesale costs and those paid by customers.
As a result, average bills are likely to reach £1,410 per household, The Observer adds.
Meanwhile, the coming 12 months is predicted to see £360 added to typical energy bills compared with their current levels.
The news follows a day of rapidly increasing oil prices on Friday which saw wholesale costs rise to 76 per cent above their levels at the start of 2008.
In related news, utilities market watchdog energywatch has revealed that many customers may not be on a green tariff, even if they think they are.
Green tariffs aim to reduce the impact of energy production on the environment by using initiatives such as carbon offsetting - which may be funded by higher costs to the customer.
Up to seven per cent of those surveyed recently by energywatch believed they were on such a package, despite the organisations assertion that only one per cent of the market is actually served on such eco-conscious terms.
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