Rising Energy Costs Hitting Consumers

Mike O’Connor, Chief Executive of Consumer Focus, said in a Thursday, 21 July press release that Scottish and Southern Energy’s price increases of 18 per cent for gas and 11 per cent for electricity will ‘heap more pressure onto already cash-strapped consumers and will tip many thousands more people into fuel poverty.’
With a Thursday announcement, SSE became the third energy company in the United Kingdom to increase its rates since June. On 8 June, Scottish Power announced increases of 19 per cent for gas and 10 per cent for electricity, while on 8 July, British Gas announced rate hikes of 18 per cent and 16 per cent. These rate hikes follow last year’s increases by E. ON UK, British Gas, SSE, Scottish Power, npower and EDF Energy.
Under the newest rate hikes that will take effect on 14 September, standard home users of SSE will pay an average yearly bill of £768 for gas, up from its current average of £651. A standard user of SSE electricity will fork out £492 per year compared to £443 before the increase.
Consumer Focus, a consumer advocacy group soon to be replaced by Citizens Advice, has sought an active role in the problem of rising energy costs. Household power rates are of major concern at a time when unemployment and lack of industrial growth are plaguing the UK.
Consumer Focus has called for reforms in the energy industry, including government review of the market structure, encouragement of competition between firms and transparency of energy fees and tariffs.
While Mike O’Connor acknowledged in their press release that firms are ‘starting to respond to the issues that Consumer Focus has raised,’ he said that a ‘big gap’ exists ‘between how consumers and companies perceive the energy market.’ don't seem to have made such increases as those pushed to the consumer.
Mr. O’Connor added that consumer trust in energy companies is lacking because of rate increases made while wholesale rates are at a third of the record highs set in 2008.
The Centre for Sustainable Energy estimates that another 2.8 million UK households will slide into fuel poverty – the inability for a household to stay warm at affordable prices - after all increases take effect. There are an estimated 9.1 million homes now in fuel poverty, including 7.35 million in England.