Powergen hikes energy prices
Consumers are being urged to switch suppliers after Powergen increased energy prices by around ten per cent.
15:43 02 November 2004
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Consumers are being urged to switch suppliers after Powergen increased energy prices by around ten per cent.
From November 29th Powergen will increase the cost of domestic energy by as much as 10.2 per cent. Gas prices are set to rise 9.6 per cent, electricity prices 8.9 per cent dual fuel customers can expect bills to rise by an average 9.3 per cent while online customers will see an average increase of 10.2 per cent.
This is the third time that prices have been increased at the German owned power company in the last 12 months.
"Powergen has gone for the softly, softly approach to price hikes, rather than one large leap as seen by British Gas earlier this year," said Neil Ranatunga, energy analyst at uSwitch.com.
"This has done well to combat negative press coverage as the headline figures have been lower, however todays price hike does bring them in line with record increases introduced earlier this year by the likes of British Gas and EDF Energy," he added.
The latest increase means that gas prices for the energy firm's six million UK customers will have risen 17.6 per cent since January 2004.
"This price rise is not a step we've taken lightly," commented Nick Horler, Powergen Retail managing director.
"All suppliers are currently affected by rising wholesale costs and we've delayed this increase for our customers longer than most of our competitors," he added.
The latest price hike was blamed on "unparalleled rises in wholesale costs", linked to record oil prices.
"Its imperative that customers shop around now and not wait until they receive their bill," said Mr Ranatunga of independent comparison and switching service uSwitch.
"Despite recent price hikes across all suppliers, there are still good deals to be had, which customers should look to take advantage of now. Regardless of Powergens price changes, their Age Concern and Online plans remain competitive," he added.
"We recognise this is a difficult time for some customers and we're keen to offer everyone support and advice to minimise the impact of this price increase, which is why we've also moved quickly to provide our most vulnerable customers with special measures," Powergen's Mr Horler added.
Powergen has announced an 8 million aid package, including free cavity wall insulation for customers over 60 and those on income or disability benefits, with the aim of helping consumers reduce their bills.