Gas Prices Up 35% - Urgent Action Needed to Protect Vulnerable

9.24.00pm BST (GMT +0100) Wed 30th Jul 2008

British Gas has today confirmed that it has increased gas prices by 35% and electricity prices by 9% with immediate effect. The increase will see average bills for people living in and around Norwich rise to around £1,240. The increase in prices by British Gas comes just a few days after EDF Energy put up gas prices by 22% and electricity prices by 17%, with other firms expected to follow suit.

Simon Wright, Liberal Democrat Parliamentary Spokesman for Norwich South, says that energy companies should be compelled to use money from a £9 billion European windfall to help protect some of the most vulnerable people from the effects of fuel poverty.

Mr Wright said: "Many local people will wonder how energy companies can enjoy a massive subsidy at a time when many families are facing a desperate struggle to pay their energy bills."

"This multi-billion pound windfall should be used to protect the most vulnerable people from the effects of fuel poverty. People should get extra help from energy companies to help with their fuel bills"

"Everyone I speak to in Norwich is worried about rising prices."

The energy firms received the multi-billion-pound windfall thanks to the giveaway of free permits to emit Carbon Dioxide under the European Union's Emissions Trading Scheme. Previous estimates have put the proceeds of that windfall at £9bn, although Ofgem estimates the true figure could be even higher.

Consumer watchdog Energywatch said it believed the 35% gas bill rise was the biggest single increase in the price of a utility seen to date.