Saturday, November 24, 2007

UK electricity and prices going up 10 percent

The BBC reports that UK energy bills will be going up 10 percent in January. However, this shouldn't hold back the Bank of England, who are desperate to cut interest rates. Since energy prices are excluded from core inflation, the Bank of England can assume happly the problem away.

Soaring fuel bills this winter could lead to a sharp rise in the number of people struggling to pay for heating, an independent energy broker says.
Catalyst Commercial Services expects domestic gas and electricity bills to rise by as much as 10% by January.

It says this could push 400,000 more households into "fuel poverty" - when the cost of heating accounts for 10% or more of household income.