Powergen to bring in 11.9 percent hike in gas prices |
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Fri, 22 Jul 2005 09:05
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LONDON: UK's second biggest energy supplier Powergen announced that it was going to raise its prices in the gas as well as electricity segments due to the acute energy crisis that is prevailing in the market today as a result of constant hikes in fuel prices.
Powergen is set to bring in the changes from August 31 when gas would be 11.9 percent costlier while electricity would be dearer by 7.2 percent. This is the third time since January 2004 that the company has hiked gas prices. Announcing the proposed hikes, managing director Nick Horler said, "The UK is in an era of rising energy prices and we, like all energy suppliers, are under tremendous pressure as the prices we pay for electricity and gas reach an all-time high."
He was of the opinion that a smaller hike in the summer would protect consumers from a bigger hike in the winter months when electricity demand would be dramatically increased. "Together we can do this by making their homes more energy-efficient and by offering specific support to vulnerable households," he added.
Powergen also announced a £18 million package that seeks to protect vulnerable customers by offering rebates and free insulation for people based on the tax credits or pension credit. The company said that the increase in its prices was enforced as the cost of electricity had risen by a massive 23 percent since November while gas prices rose by 35 percent in the corresponding period. "These unprecedented increases are affecting all energy suppliers. Other companies are indicating that they expect to increase their prices in the near future," the company said in a statement.
However, consumer groups are less than happy with these constant increases, "In this case my sympathy is with Powergen's six million customers and not with the firm,” said Adam Scorer, spokesman for consumer group Energywatch. He was of the opinion that no matter how much the prices grew in international markets, energy companies always manage to rake in huge profits.
Alan Tattersall, head of products at uSwitch.com voiced similar concerns, "Even with the announcement of additional energy efficiency measures and rebates for Age Concern customers, this still remains the single largest gas price hike Powergen have applied over the past 18 months," he observed.
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