Gas Suppliers Turn Up the Heat
12/05/2008
Centrica, owner of British Gas, is to raise gas and electricity prices for the second time this year, as it claims it is struggling to maintain adequate profit margins.
Increases in the cost of wholesale gas have led to Centrica passing on the cost to customers. Following a 15 per cent increase in prices earlier this year, Centrica has announced its intentions to inflate them yet further.
British Gas has lost over 100,000 customers since the first 2008 price rise in January, but nevertheless intends to increase its prices further to meet the near doubling cost of buying gas through wholesale trade.
Centrica today issued a statement to the stock exchange, quoted in The Times, in which it said: "While the current outlook for gas prices does create a challenging environment for energy suppliers, we will take the necessary action to deliver reasonable margins in the retail business."
Customers are not reacting well to these proposals, and are steadily deserting the gas and electricity supplier. At the beginning of 2005, British Gas had 17.7 million customers. Now that figure stands at just 15.9 million.
Increases in the cost of wholesale gas have led to Centrica passing on the cost to customers. Following a 15 per cent increase in prices earlier this year, Centrica has announced its intentions to inflate them yet further.
British Gas has lost over 100,000 customers since the first 2008 price rise in January, but nevertheless intends to increase its prices further to meet the near doubling cost of buying gas through wholesale trade.
Centrica today issued a statement to the stock exchange, quoted in The Times, in which it said: "While the current outlook for gas prices does create a challenging environment for energy suppliers, we will take the necessary action to deliver reasonable margins in the retail business."
Customers are not reacting well to these proposals, and are steadily deserting the gas and electricity supplier. At the beginning of 2005, British Gas had 17.7 million customers. Now that figure stands at just 15.9 million.
