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Nine out of ten homes in the U.K. are reported to be users of gas for heating and, in very many cases, for cooking too. This means that recent increases in gas prices hit all but a few households, and will also mean that the cost increases will bite hard if the usual seasonally low temperatures materialise; statistics indicate that between January and March most families usage accounts for around 40% of their total annual bill.
Consumers were also dismayed to note that the British Gas price rise was introduced with no notice period whatsoever, giving them no time to 'shop around' other potential suppliers. Not that this would necessarily achieve a great deal, since Npower and EDF have already introduced their increases, which are said to be regarded by their customers as 'severe', and other suppliers are expected to follow suit.
The British Gas increase has ensured that, at a swingeing 15%, the company reclaims its title as most expensive provider. It is their 7th increase since 2003 - these now total a cost rise of 76%. TheEnergyShop.com comparison website estimates that this increase alone will total around £1 billion additional income for the company, on top of an operating profit for the first half of 2007 standing at £533 million. Also, let us not forget that, in this 'brave new world' with its many anomalies, British Gas and other companies also supply electricity to many of their customers under dual fuel contracts; in the last few days it has been reported that, to comply with an EU pollution reduction scheme it has become necessary for generation companies to obtain permits for the release of climate warming gases. Despite claims that these are issued at no cost, wholesale electricity prices have been raised to 'cover the costs', resulting in a £9 billion windfall for energy suppliers.
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