The cost of energy bills expected to reach a record high

Energy bills may reach a new high as the prices are increasing by almost a fifth according to new warnings from the experts. British Gas announced more pain for homeowners yesterday when they stated that by next winter wholesale gas costs could increase by as much as 15%. On top of this fact, suppliers will have to pass on more costs that they cannot control onto their customers increasing the average household gas bill by about £50.

Director of public aid website, Mark Todd, stated that they are hearing that suppliers are facing large pressures, and the pressures are not just limited to British Gas, therefore people should expect to see prices increase all over the country regardless of who their supplier is. He added that if the wholesale gas increases as expected by 15% this will pass onto a bill increase of about ten percent making the average gas bill grow to about £80 more per year.

It gets worse however, as British Gas has already announced that separate costs are what will increase bills by £50 per year, so for the average British Gas subscriber all of these added costs would total up to be an increase of £130 more per year making it a 19% increase in energy bills.

The grand total according to Todd would be an average of £1,400 for electricity and gas for most homeowners every year; which is the highest that energy bills have ever reached making owning a home even more out of reach for some people.