Energy bills to go up again, suppliers announce

Though it is a fair bet to say that most Britons pay scant attention to developments in the Niger Delta region, or even pricked up their ears when it was reported that BP's top executives are being kicked out of Russia as diplomatic relations hit a rocky patch, such events will certainly be felt in a majority of UK households in the next few months.

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For, while it may seem like people's pockets could not be hit any further, the leading energy suppliers have confirmed that, as wholesale oil, gas and coal prices keep rising on the back of global unrest and limited supplies, prices are set to go up again before the cold winter months come around again.

The French utilities giant EDF has become the first supplier to announce a new round of price hikes, confirming that its UK arm will raise its electricity and gas tariffs by 17 and 22 per cent respectively over the next few weeks.

At the same time, rivals Scottish & Southern Energy, which is expected to report a fall in first-half profits next week, as well as British Gas owner Centrica, have signalled that they too are looking into revising how much they charge, with further announcements set to be made shortly.

Eva Eisenschimmel, chief operating officer of EDF Energy, commented: "Record world oil prices have continued to drive up wholesale gas prices. Alongside unprecedented rises in wholesale coal and electricity costs, this has impacted hugely on the cost of supplying energy to our customers."

Worryingly, the fact that fuel prices are due to go up by about a fifth later this summer looks like being good news for consumers.

Given that EDF also reported that wholesale prices for coal have gone up by 70 per cent since January, while the increases seen in the cost of gas and oil have been 63 per cent and 47 per cent respectively, only a naïve optimist would rule out further tariff hikes before the year is up.

Fortunately, with the winter just a few months away, it looks like the energy industry watchdog is starting to take action to protect the most vulnerable households from spiralling costs.

According to a new report from the regulator, there is still widespread confusion surrounding the "social tariffs" available for the lowest-earning consumers, with none of the six major suppliers currently doing their best to make sure the best rates are readily available for such households.

However, while Ofgem's pressure has already led to the 'big six' pledging a further £225 million to help at-risk consumers, including the elderly and those on benefits, consumers cannot simply wait for someone else to save them money.

Rather, there has never been a more pressing time to shop around and compare the best deals.

Not only will switching to a cheaper provider save a tidy sum over the winter months but, given that most contracts are for 12 months, they could offer much greater savings in the long run and guard against further turmoil in the world oil and gas markets.