Posts Tagged ‘Raises’
In the first quarter of 2008 British Gas, the major gas supplier in the UK, increased prices to the tune of 15%. The company attributed these increases to rising wholesale costs that needed to be passed on to end users to maintain profit margins.
Centrica, who own the British Gas brand, gave forewarning of the increases before Christmas. It is anticipated that the average household fuel bill will increase by £130 annually as a result. Last year the company actually reduced gas prices by 20% (and electricity prices by 17%). In this way British Gas won back a good proportion of its old customer base.
In order to supply some good news to offset the damaging publicity caused by these new rises the company has proposed a programme of installing free home insulation for the over 70s. It is unlikely that this measure will be sufficient to prevent customers from wanting to compare gas prices. After all, the gas may flow through the same pipes but there are in fact at least a dozen suppliers selling the service. Not all the names are as familiar as British Gas but in view of this competition it seems sensible to compare gas prices.
In response to the increase in prices, British Gas has called vigorously for the freeing up of the energy market. They hope that such a move would uncouple gas prices from oil prices: a connection that is always a driver when gas prices go up. Of course, many customers might also recall the millions spent on advertising by British Gas and think this money may have been better spent improving service. For anyone harbouring such thoughts it certainly makes sense to compare gas prices.
17.4.2008