Jody Harrison
SCOTS living in the north of the country will be hit hardest by a Scottish
Gas price hike with bills rising by as much as 4% higher than those in the
south of England.
Parent company British Gas has announced it is to increase its average
electricity bills by 10.4% and gas tariffs by 8.4% in the latest blow to
family finances.
However, due to the costs of using the different electricity grids in the
UK, customers living north of Perth will suffer an average rise of 11.2% –
the biggest in the UK – while those in the south of Scotland will endure an
average increase of 9.5%. The smallest rise is a 6.8% increase in the
south-west of England.
Scotland’s electricity transmission network is split between Scottish
Hydro Electric, owned by SSE, in the north and ScottishPower, which holds
the licence for central and southern areas.
Centrica, which owns the British Gas and Scottish Gas brands, said its
regional price differences reflected variations in the network costs it was
obliged to pay to the transmission companies around the country.
The group, which has 800,000 Scottish customers, is the second of the “big
six” providers to announce price increases this month after SSE revealed
more than seven million customers will be hit with an 8.2% rise from next
month.
The move sees British Gas tear up a pledge made earlier this year to use an
annual earnings windfall from the cold weather to keep a lid on tariffs.
The company said it “understands the frustration” of prices rising faster
than incomes, but the hike means the average annual household bill will go
up by £123.
Politicians were quick to condemn the hike, with Prime Minister David
Cameron advising people to switch supplier.
Mr Cameron said the Government was doing what it could to try to keep
costs down and get new suppliers into the market.
He said: “We are legislating to say these companies have to put their
customers on to the lowest tariff. But there is something everyone can do,
which is look to switch their electricity or gas bill from one supplier to
another.”
Energy Secretary Ed Davey said consumers unhappy at the company’s decision
should look elsewhere as many other suppliers were offering lower prices.
Mr Davey said: “I have said to British Gas customers that if they are
worried they should change. There are a range of competitors and suppliers
that are offering a much better deal. And those suppliers are there because
of the actions of this Government.
“In 2011, there were no independent suppliers able to compete with British
Gas or compete with SSE, who had customers above 50,000. Now we have strong
independent suppliers and customers can turn to them and I urge them to do so.”
Labour Leader Ed Milliband, who has promised to freeze energy prices if he
wins the next General Election, said the ruse showed there was “a real
urgency” for action.
He said: “Week in, week out we see higher prices from these companies
causing damage to families and businesses and frankly we have got a Prime
Minister who is too weak to act.
“He is standing up for the energy companies not the consumer. The reality
is that they are overcharging people in a market in a market that’s not
working and has broken.”
British Gas said it had not taken the decision to increase prices lightly,
adding the Government’s “social and environmental programmes” were among
the reasons for the rise in the cost of energy.
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