[UK] MP's plea over soaring gas prices

from The Manchester Evening News

Ian Craig

MP Tony Lloyd is urging the government to act over soaring gas prices.

British Gas has announced its biggest-ever price hike, 22 per cent, to come into effect early next month.

This could mean average energy bills of £1,000 a year for the first time and campaigners warn that millions of poor households and pensioners could be hit.

Mr Lloyd, MP for Manchester Central and a former Labour minister, is writing to Chancellor Gordon Brown, urging him to act because of the effects on low-paid families who may be forced to choose between heating and eating.

He said: "I want the Chancellor to consider whether this price rise should be referred to the competition authorities.

"Power companies are supposed to be operating in competition."

But British Gas is not only the biggest supplier, it has the greatest number of customers using prepayment metres and the highest number of the most vulnerable consumers.

Energy Watch claims the clock is now being turned back, with fewer suppliers in the market providing less choice.

Mr Lloyd added: "Whether or not Mr Brown agrees to have a competition inquiry, I'm urging him to look at the profits made by British Gas and whether he should consider imposing a windfall tax on them if he finds they've been racking up profits.

Pensioners

"Although the government has moved to protect consumers from the worst effects, including the winter fuel allowance, the elderly in particular are at risk from this fuel rise during the winter months.

"And it's not just pensioners but people on low incomes."

Mr Lloyd adds that fuel costs have been increasing as a proportion of the income of people further down the wages ladder.

He wants Mr Brown to take urgent action. Help The Aged have warned that an extra 200,000 older people are pushed into fuel poverty when there is a 10 per cent increase.

A rise of more than double that could have a wide effect on vulnerable pensioners, it said.

Centrica, which owns British Gas, blames the increase on soaring wholesale gas prices, which it said are now the highest in Europe.

HOUSEHOLD water and sewerage bills will rise by an average 5.5 per cent across England and Wales.

But customers of United Utilities, which serves the north west, will see an increase of 7.6 per cent, adding £22 to their average bill.

Across the country, the rise will push bills up by £15 to £294 for the average household after it comes into force in April.