Households are being warned to expect energy bills to rise for the second time this year as the crisis in the Middle East pushes up the cost of gas and electricity.
All of Britain’s largest suppliers have recently put up their prices by an average 5.9%, increasing the annual bill by £63 to £1,132. However, the wholesale costs of energy have risen by 10% in the past month alone and utility firms are now likely to pass this on.
Mark Todd at Energyhelpline, a comparison site, said: “There is no getting away from the fact that instability in the Middle East and north Africa is not only having an impact on the cost of petrol but also on domestic fuel.
“Ultimately, this is going to be passed on to the consumer and we would expect to see more rises at the end of the summer to early autumn.”
The price of gas on the wholesale markets, where domestic suppliers buy their energy, hit 63.3p a therm at the end of last week, compared with 57.8p a month ago. Electricity prices have soared from £47.98 a MWh (megawatt hour) to £53.30. Over the past year, wholesale gas prices have risen by 79% and wholesale electricity prices are up 40%.
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Todd urged customers who are worried about soaring bills to switch to a fixed tariff.
The top one-year fixed energy deal on the market is from Atlantic Electric & Gas, which costs an average £952 a year for dual fuel. A customer paying the average annual bill would save £180 a year by moving to this deal.