Wednesday, December 5, 2007

UK gas prices up 15 percent

The UK's largest gas supplier will shortly push up gas prices by 15 percent. However, it is not a major issue for the Bank of England. Energy prices are not in their measure of "core inflation". Therefore, it is nothing to worry about, unless that is, you have to buy gas.

(London Times) - British households suffered a fresh blow to their strained finances yesterday as British Gas said that it was lifting the price of a key energy tariff by up to 15 per cent, prompting fears of a wider increase in gas and electricity bills in the new year.

Britain’s largest energy supplier said that it was putting prices up on its Market Tracker price plan, which follows prices in the wholesale energy market, by 13 per cent for gas and 15 per cent for electricity, with immediate effect.

The majority of the ten million gas and six million electricity customers of Centrica, the British Gas owner, who are on standard or online tariffs will not be affected, but industry experts say that the news is a harbinger of price rises to come in 2008.