Huge blow to families as energy bills rise 10.6%

London Evening Standard/LondonStruggling London families were dealt a huge blow yesterday when British Gas said energy bills will go up by 10.6% next month.The bombshell from Britain’s biggest energy supplier will add £148 to the cost of heating and lighting a typical home and send the annual total spiralling to a record £1,494. It is the second big hike by one of the “Big Six” energy giants this autumn following an 8.2% rise pushed through by Scottish & Southern Energy last week.The other suppliers are almost certain to follow suit.The British Gas rise, which comes into force on November 23, immediately triggered a storm of protest with consumer groups accusing the company of delivering a “big, nasty” shock to customers that will force thousands to make a “heat or eat” choice over the winter. Prime Minister David Cameron today said British Gas price rises were “disappointing” and urged people to try to save money by switching suppliers.Shadow energy secretary Caroline Flint said: “People are sick and tired of being left out of pocket because of David Cameron’s failure to stand up to the energy companies. Britain’s energy market is not working for ordinary families.”Labour leader Ed Miliband has pledged to freeze energy prices if Labour comes to power at the next election. A poll published in the Standard yesterday reveals that this was the most popular of all the policies unveiled during the party conference season with 62% of voters saying it would be best for them.Amid uproar in the Commons, Energy Secretary Ed Davey told MPs: “It’s extremely disappointing news for British Gas customers. British Gas will need to justify their decision openly and transparently. We are pushing competition and I would urge customers who are unhappy to change their supplier.” Tom Lyon, energy expert at price comparison website uSwitch, said: “This price hike will be seen by many as a broken promise after British Gas suggested in May that it would use the extra profits it made last winter to hold off from any price hikes. Its customers have had the rug pulled from under their feet and I suspect that many will be feeling let down and betrayed.” British Gas’s parent company Centrica saw its profits rise by 9% to £1.58bn in the first half of the year. British Gas bosses said they were forced into yesterday’s move by a combination of rising global energy prices, increased charges for using the National Grid’s gas and electricity networks and the burden of environmental and social charges imposed by the government. But Davey said the company’s numbers “don’t add up”.The company insisted it had been making losses for “a number of months” after the wholesale cost of gas went up by 8% and its residential supply arm would be in the red next year if it did not push through the rises.