Two more energy firms have said they will increase gas and electricity prices, blaming higher wholesale costs. Scottish Power said it would raise gas prices by an average of 34% and electricity prices by 9%, effective from Monday 1 September. Soon after, Npower said domestic customers would see an average rise of 14% for electricity and 26% for gas, effective immediately.

Scottish Power said it was “forced to follow other energy providers”. “These are difficult times and we understand the financial impact this announcement will have on our customers,” said Willie MacDiarmid, Scottish Power’s director of energy retail. He added that the volatility in the gas market was contributing to higher UK domestic prices. Dual fuel customers will see their bills increase by an average of 25%. Scottish Power also said it planned to spend £40m on steps to help protect vulnerable customers over the next three years. The firm, owned by Spain’s Iberdrola, is to invest £2.8bn from 2008 to 2010.

Npower said: “Today’s price rises are due to massive increases in wholesale costs which make current pricing levels unsustainable, following a price decrease in 2007 and an increase at the start of 2008.” “Until today Npower’s domestic gas prices were still the same level they were 18 months ago – whereas, during this time, the cost of wholesale gas has doubled,” said the firm. Many pensioners, already worrying about whether they can afford to heat their homes this winter, will be outraged by news of yet more colossal price hikes.

Related posts...

• June 22, 2010 -- UK Business Energy Prices: (3)
  A new survey carried out by the Economist Intelligence Unit has revealed that over 80% of British firms expect energy and fuel prices to rise sharply and almost 50% have great concern that the UK coul...
• February 21, 2010 -- Identifying a Half Hour Meter: (0)
  How to find out if you have a half hourly meter – So how do you know if you have a half hour meter?  It’s actually quite straight forward, and all you will need to find this out is a recent copy o...
• February 10, 2010 -- UK Business Gas Prices: (0)
  Business Gas Prices can be difficult to understand, as there are many different types of pricing structures available.  You could simply ring around and obtain gas prices direct from suppliers, but it...
• February 7, 2010 -- Oil Prices Back To $70 Range: (0)
  Oil prices plunged in a busy trading session on Friday, triggering big losses across the commodities markets, as investors went back to buying into the US dollar.  Crude oil prices did have a partial ...
• February 5, 2010 -- CRC Business Lights: (1)
  The era of the 'on-all-night' illuminated high street could end, the Environment Agency is predicting. The agency says new rules will force businesses to switch off lights and displays at night to mee...
• February 3, 2010 -- Bglobal Smart Meter Deal: (3)
  Bglobal Plc said it has signed a new agreement to supply and install smart meters for British Gas Business during 2010. The contract value is anticipated at more than £12 million. In addition, the com...