British households face further squeeze on their finances, as energy bills cap set to go up again despite Ed Miliband’s pledge to bring down bills by £300_Nhy
Households face a further squeeze on their finances – with energy bills set to go up again and Britain’s biggest water firms looking to hike prices for millions.
Despite Energy Secretary Ed Miliband’s pre-election pledge to bring down bills by £300, an expected £85 rise in the price cap next week will mark the third such lift since Labour came to power.
The jump – equating to a £255 hit for the average home – is a fresh blow to millions of pensioners who last year were stripped of their winter fuel allowance payments.
Meanwhile, more than 27 million people face soaring water bills after three companies last night joined Britain’s biggest utility firm in urging for further price rises.
Thanks to cold weather and low gas storage levels in Europe, energy costs are set to rise again in April, taking the average bill to over £1,800 per year, a forecast says.
Consultancy Cornwall Insight predicted that the energy price cap, controlled by watchdog Ofgem, will jump to £1,823 from April, an £85 rise from the last change in January.
‘Once again, it’s more money out of working people’s pockets under this Labour government,’ said acting Tory energy spokesman Andrew Bowie MP.
He added: ‘During the election, they promised the public £300 off energy bills.’
Despite Energy Secretary Ed Miliband’s (pictured) pre-election pledge to bring down bills by £300, an £85 rise in the price cap next week will be the third increase since Labour came to power
By April the average bill will soar to over £1,800 per year, if a subsequent planned increase goes ahead (File image of Wind turbines at Drax Power Station in Selby)
It emerged yesterday that Mr Miliband had written an urgent letter to Ofgem urging it to protect consumers from a ‘rollercoaster’ in global gas markets (file photo)
When Labour entered government in July last year, the cap stood at £1,568 but since then has risen twice to £1,717 in October and then £1,738 last month.
If the latest prediction is accurate, it will mean the average annual energy bill will have leaped by £255 since the election.
The final decision on the cap will be made by Ofgem on Tuesday. It emerged yesterday that Mr Miliband had written an urgent letter to Ofgem, according to the Guardian, urging it to protect consumers from a ‘rollercoaster’ in global gas markets as a deal that let Russian gas flow to Europe through Ukraine ended last year.
In another blow, Southern Water, Anglian Water and South East Water yesterday echoed Thames Water in urging the Competition and Markets Authority to reconsider rises they will be allowed to implement, asking to go even further.
Southern Water, which serves 2.7 million people, had already been granted a 53 per cent rise by 2030.
In December, Ofwat let firms hike annual charges by an average of £157 over the next five years to upgrade Britain’s crumbling sewer and water infrastructure.
Their call came hours after debt-ridden Thames Water won a High Court battle to secure a £3 billion rescue loan. But Charles Watson, of River Action, called the bailout a ‘national scandal’.
