[UK] Eat Or Heat

from The Daily Record

THE GRIM CHOICE FACING EVERY OAP IN SCOTLAND AFTER HUGE GAS PRICE HIKE..
By John Ferguson

PENSIONERS will have to decide between heating their homes and buying food after yet another huge price rise from British Gas.

It's the third time in 12 months that the energy giants, who own Scottish Gas, have hit customers with higher bills.

Bosses announced yesterday that prices are going up by 12.4 per cent for gas and 9.4 per cent for electricity.

British Gas managing director Mark Clare, who pocketed £800,000 in salary and bonuses last year, once again claimed that higher wholesale energy costs had made price rises inevitable.

But pensioners' charities warned that the latest increases could kill old folk north of the Border.

Andrew Sim, of Age Concern Scotland, said: "Many elderly and vulnerable people will start to make the decision between heating and eating.

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"Something will have to be done to protect them if fatalities are to be avoided. Action needs to be taken before winter."

John Wilson, chairman of the Scottish Pensions Association, added: "It's an absolute disgrace that we are being made to pay these prices.

"So many old people have given the country so much, and now they are being left in poverty."

British Gas have 10.7 million UK gas customers and 5.8 million electricity customers. Even before yesterday's announcement, they were easily the most expensive energy suppliers in the UK.

Bosses put up gas and power prices by 14.2per cent last September, then announced a 22per cent rise in bills in March. The latest rises take effect on September 4.

Customers who buy gas and electricity from the company now face a combined annual average bill of £1134.

Other energy firms are also putting their prices up steeply - yesterday's rise was the 11th by a major supplier this year.

But industry experts say customers can still save plenty by switching away from British Gas.

Graham Kerr, of consumers' pressure group Energywatch Scotland, said: "Customers who have stayed with British Gas are paying a high price for their loyalty. It's time they looked around for a better deal."

Kerr also called on the Government to "look afresh" at their strategy for keeping people out of fuel poverty. A Government spokeswoman claimed: "We are doing everything we can."

British Gas said they would expand their winter rebate programme for the old and needy to help them cope with the increases.

Bosses at the firm say their wholesale prices have gone up by 71per cent in the past 12 months, leading to a record loss of £143million in the first half of this year.

British Gas's parent company, Centrica, made profits of £569million in the same period, although returns were down by 36per cent.

When British Gas put up prices in March, Clare claimed he saw "no need" for more increases this year as long as wholesale prices remained steady. He now says wholesale costs have gone up by 30 per cent since then.

Ann Robinson, of price comparison website uSwitch.com, said: "The public assurances given earlier in the year have been rendered meaningless."

Clare yesterday refused to rule out even more rises this year. He said: "We hope not, but it depends on the cost of wholesale gas."