Domestic and business energy prices' to rise by 5%' - 12/08/2010
Domestic and business energy prices are expected to increase next year, the Bank of England has warned.
Taking into consideration inflation, the central bank predicted that gas prices would rise by five per cent or more in early 2011, putting further pressure on homes and businesses, reports the Press Association.
The price hike is also being attributed to a rise in wholesale gas prices, which energy suppliers will be under pressure to pass on to customers.
According to Consumer Focus, the average annual gas bill is £756 but this could start to rise to around £800 by early next year.
Richard Hall, energy expert at the consumer rights organisation, said: "Customers have seen only small price cuts despite wholesale energy prices being half what they were at their peak, and beginning to fall again, yet suppliers have seen big boosts to their profits."
Energy suppliers British Gas recently posted operating profits of £585 million for the first half of 2010 - up 98 per cent on the same period last year.
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