With consumers facing more expensive goods in the shops, higher taxes, public spending cuts and low pay rises, the current economic situation is far f…
With consumers facing more expensive goods in the shops, higher taxes, public spending cuts and low pay rises, the current economic situation is far from bright and for those with debt it is much worse.
For this reason, consumer groups have been unhappy to hear the latest news of higher prices for domestic fuel, which could add more pressure to already stretched household budgets.
Scottish Power has announced a rise in prices of 19 per cent for gas and ten per cent for electricity, which could bring dismay to its customers, campaign group Consumer Focus has said.
Moreover, switching may not always be the answer as competitors will probably follow suit with their own hikes, according to the charity’s head of energy Audrey Gallacher.
She said: “This huge increase will be a body blow for consumers and we fear other firms will follow Scottish Power’s lead.
“We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.”
Ms Gallacher said the hike comes at the very time when energy regulator Ofgem has been questioning the fairness of the pricing structures employed by the big six suppliers.
She argued this displayed a willingness to respond to wholesale energy price rises with swift hikes, but tardiness in passing on any falls in cost.
And the impact on hard-pressed consumers was calculated by Moneysupermarket.com, which said the typical household with Scottish Power as their supplier will now have to pay an extra £175 a year.
Posted by Paul Thacker