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ITN
Energy chiefs face 'grilling' from MPs
Energy chiefs face 'grilling' from MPs
Britain's energy bosses have warned householders to brace themselves for higher bills.They said prices are likely to rise due to soaring wholesale gas costs when they gave evidence to the Commons Business and Enterprise Select Committee.The MPs' inquiry into energy prices comes amid fears that bills could rise by up as much as 40 per cent this year.Sam Laidlaw, chief executive of British Gas parent company Centrica, said he had not made a decision yet on prices but warned: "It is clear that at some point in the future gas prices are going to have to move up."Paul Golby, head of E.ON UK, said bad debts had doubled in the past 12 months as customers struggled to meet rising bills.The average dual fuel customer is now paying nearly 15 per cent more - £1,048 - for gas and electricity after the latest round of price increases earlier this year, according to consumer watch dog Energy Watch.Mr Laidlaw defended Centrica's £1.2 billion profits and added that accusations of "fat cat earnings" were unfair.He said: "We need to make a return in this business because we need to invest in new sources of gas for the UK."Mr Golby added that it was "not difficult" to see the upward pressure on costs faced by energy firms and said: "We are facing a seismic shift in commodity prices."As well as spiralling wholesale gas costs, suppliers are also under pressure to tackle climate change through cutting carbon emissions and sourcing more electricity from renewable sources - also adding to customer bills.Help The Aged and Age Concern called for a £50 million rebate for fuel poor pensioners this winter amid fears that 800,000 older households could be dragged into poverty if prices jump 40%.The companies who are committed to spending £50 million on social assistance schemes say they would consider the proposals from the lobby groups.But they added that any attempts to set a mandatory social tariff for vulnerable customers would stifle innovation and could reduce competition in the market.
ITN | June 24, 2008
