Gas And Electricity Prices Set To Increase By 15% In 2011
Gas and electricity prices are expected to rise by as much as 15% over the course of 2011.
There are reports that gas and electricity prices are expected to increase by 15% over the course of this year although not all in one go. The price increase will occur in two stages with the first one expected in just a matter of weeks.
Utility Exchange reported last week that E.ON is increasing business electricity and gas prices by 6.5% from today. However, domestic prices are not expected to increase by quite that much at first. It’s thought prices will go up by around 5% initially but will be followed by a further price rise later in the year. This could be as much as 10%.
Energy providers blame the rising cost of wholesale gas prices for the price increases which has not been helped by the unrest in North Africa and the Middle East. The price increases also reflect the problems being faced by Japan and their increased demand for gas and the fact that the growing economies of countries such as China and India are also having an effect on the demand for gas.
The price of gas has increased dramatically over the last year. In April 2010 the price of a therm was 45p but it’s now risen to 70p – a rise of 56% on a year. As a result the big six energy suppliers have been getting rid of their lowest and best tariffs and putting more expensive ones in their place and as mentioned earlier price rises are not just affecting domestic energy but also business electricity and business gas prices.
The one good thing happening in the energy market at the moment is the fact that Ofgem has forced energy companies to give their customers 30 days notice of any price increases, so users will have a chance to shop around and switch to a cheaper supplier. Often you get a better deal if you get your gas and electricity from the same supplier, therefore it’s a good idea to compare providers and look for the cheapest dual fuel deals.
It seems rising energy prices won’t be unusual during 2011 especially if the unrest in countries such as Libya and Syria continues. While it’s unlikely we will be able to avoid price increases everyone can take action and look for the best deals to ensure they are not paying more than they should for gas and electricity.