Millions of households are facing higher fuel bills now that Powergen, the UK's second biggest energy supplier, has decided to raise gas and electricity prices. The increases follow big rises from the retail sector leader British Gas and third-ranked Npower, which have prompted warnings that hundreds of thousands of consumers may face fuel poverty. Consumers were warned that they could face further sharp increases next year if oil prices stay high.
Powergen, which has 6 million customers, said gas bills would go up by 9.6% and electricity by 8.9%, increasing average bills for dual-fuel customers by around £55 a year.
'This price rise is not a step we've taken lightly. All suppliers are currently affected by rising wholesale costs and we have delayed the increase longer than most of our competitors,' said Nick Horler of Powergen Retail. Powergen said wholesale electricity prices rose by 39% in the last six months while wholesale gas prices went up by 49%.
Consumer group Energywatch warned that the increases were forcing thousands more people into fuel poverty. 'Consumers deserve a decent explanation of why they will have less to spend on food, clothes and other essentials because of their growing energy bills,' said chief executive Allan Asher.
