|
- 7 January 2009
Gas and electricity firm chiefs were today told, Cut your prices now. The calls for immediate cuts came as the credit crunch and the big freeze tightened their grip on the Fylde coast. Wholesale oil prices are falling but so far Scottish Power is the only one of the so-called “Big Six” energy providers to drop its prices after cutting one of its tariffs by 10 per cent. However, the reduction was today labelled “pathetic” by cash-strapped Fylde residents, many who say they are too frightened to put on their heating during the current sub-zero temperatures. One community leader even said she feared the UK was returning to a Victorian age where elderly people froze to death in their own homes. Several energy companies told The Gazette they did have plans to cut their prices – but not until later in the year. Gwen King, chairman of Queens Park Residents’ Association, said: “There are people on this estate who are too frightened to put the heating on right now. “They sit there in the cold because of how much it costs. “We’re seeing a return to Victorian times where people are freezing to near death. “But why should one energy company have the right to cut its tariff while the others don’t? “Ten per cent is pretty pathetic. I would say 15 per cent across the board would have been a much better option.” UK households were hit by two price increases for gas and electricity during 2008. The average dual-fuel bill now tops £1,000 a year – £300 more than it was a year ago Wholesale prices for gas and oil have fallen globally by 40 per cent since their peak last summer. While this is being reflected in reductions at petrol filling stations many people are struggling to meet household fuel bills. The Gazette reported earlier this week how the current cold snap was a potential killer for some of the most vulnerable members of society. Nick Ansell, debt advisor at Blackpool Citizens Advice Bureau, said: “The average benefit claimant is on around £60 a week and almost half of that goes on keeping themselves warm. “Any move to cheapen energy prices is to be welcomed, but I think they should be doing more seeing as the wholesale price has come down so much. “The problem they have is that these companies are answerable to shareholders and they want to see profits so they will continue to charge more.” The reduction by Scottish Power means users on its Price Sure plan will see a drop in their annual bills by around £81. Joan Humble, Blackpool North and Fleetwood MP, said the reduction was “a step in the right direction”, but added: “I don’t think it goes far enough. “With this recent cold weather more people on the Fylde will be using a lot more energy and therefore paying more in the coming months. “These people need help and while a 10 per cent cut from Scottish Power will help, it won’t help everyone.” Fylde MP Michael Jack added: “The regulator needs to have more clout and show its teeth in this ultra-competitive market.
From the public’s point of view this cut will be welcomed, but this also needs to be reflected across the board. Fuel poverty is a big issue in parts of the Fylde which needs to be addressed more coherently.”
Ian Parrett of St Annes-based energy analysts, Inenco, which five years ago called for a Government inquiry into fuel price tariffs, said: “The current issues in the gas supply market highlights the concern we have over the reliability of supply. “We wouldn’t expect to see prices dropping markedly in this time of uncertainty. “There is still a perception the ‘Big Six’ energy companies are not as competitive as they could be and there does seem to be scope for further reductions without placing the risk factor of a fixed price onto customers.” As for the companies themselves, bosses told their customers to sit tight. A spokesman for British Gas said: “We hope to be in a position to cut our prices this year, if wholesale energy markets allow.” Dr Paul Golby, chief executive of Eon, said: “If we continue to see falling wholesale electricity and gas prices, we’d hope to reduce customers’ prices as soon as we are able. “We’re obviously very aware of the difficulties our customers are experiencing, especially considering the current economic problems, and we’re monitoring wholesale prices closely in the hope of making this move.” A spokesman for NPower said: “If there is a significant and sustained fall in wholesale energy prices we will look to review our retail prices. “The reality now is that gas wholesale prices continue to be very high – more than 50 per cent higher than at the beginning of 2007. “During the same period, retail gas prices went up by only 27 per cent. “We have therefore absorbed a huge amount of this increased cost in an effort to protect our customers.” And EDF Energy said: “EDF Energy fixed priced products are currently among the most competitive on the market. “We firmly believe these tariffs offer customers protection and security in a volatile market.” This post has been viewed 889 times.  Related posts... |
Login/Register
Search our blog
Archives
 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006
Categories
Business Electricity
Business Gas Business Water Commercial Energy Commercial Gas Commercial Water Energy Broker Home Energy News Latest News LED Lighting Oil News Renewable Energy UK Energy Suppliers UK Smart Meters World Energy News
Links
Business Electricity Business Gas Business Water Call Back Request Commercial Energy Commercial Gas Commercial Gas Prices Commercial Water Contact Us Energy Broker Energy Market Reports Energy Solutions Energy Suppliers Facebook Fan Page Follow us on Twitter Home Energy News Join us on Linkedin Oil News Oil Prices Renewable Energy RSS News Feed Smart Meters Subscribe Latest News UK Electricity Prices Water Utilities |
UK Energy Price Cuts:
[...] This chap added an interesting post on UK Energy News Blog, Business Energy and the UK Energy Market …Here’s a small excerptOne community leader even said she feared the UK was returning to a Victorian age where elderly people froze to death in their own homes. Several energy companies told The Gazette they did have plans to cut their prices â but not until … [...]
Pingback by UK Energy News Blog, Business Energy and the UK Energy Market … | Better Life For The Elderly — September 2, 2009 @ 6:56 am