British Gas announced yesterday that they are to have yet another price increase. The company that made 742 million pounds profit in 2010 are making an 18% increase on gas prices and a 16% increase on electricity. British Gas is the second of the big 6 energy companies to announce price increase after Scottish Power announced an increase in price of 19% on gas and 10% on electricity.
British Gas price hike said to be "devastating for consumers"
British Gas have put these price increases down to a hike in wholesale prices and say they have been selling energy at a loss for the last 3 months. This price hike, which will take full effect by the 18th August, will see the average dual fuel bill rise by nearly £200 to £1,288. The price increase could actually be as much as 24% for some customers depending on how they pay their fuel bills and where they live but the minimum increase will be 12%.
Are Solar Panels the answer?
In response to the price increase British Gas have said that these increase in price don't need to result in higher fuel bill with their introduction of free energy efficiency schemes such as free loft insulation and cavity wall insulation that they will be writing to all their customer about by the 19th July.
The latest price hike rises more questions about whether there should be more investment from the government into the renewable energy market, especially to ensure that when the feed in tariff is reviewed later in the year it is made an attractive investment option for larger scale solar development as well as it already is for home owner. With the Feed-in Tariff scheme home owners with solar panels installed on their properties not only save hundreds of pounds on energy bills but can also earn around £900 - £1,200 a year from the electricity that is produced.
Please feel free to discuss your opinions below!
