Eat or stay warm

Jan 5 2008 by Paul Loraine, The Journal

PRICE hikes by energy provider Npower which will see average household energy bills rise to more than £1,000, were branded “devastating” by pensioners yesterday.

National increases of 17.2% for gas and 12.7% for electricity will affect more than four million households, around half a million of them in the North-East.

The price rises will see Npower’s average joint gas and electricity bills soar to more than £1,000 for the first time.

While the average electricity bill in the North-East will rise by a slightly less severe 10.6%, the increase was still enough to stir anger in the region.

It was thought that the inflated prices would deter many pensioners from putting their heating on in the winter months.

Liberal Democrat MP for Berwick, Alan Beith, said: “The Government has already admitted that it is not going to meet its targets for tackling fuel poverty and winter deaths among the elderly, which remain higher in this country than in the rest of Europe.

“These increases are likely to add to serious problems and underline the urgency of helping people to cut energy consumption and fuel bills while keeping warm.”

The elderly will be left in a particularly vulnerable position, with many left to choose between essentials.

John Berry, secretary of the North-East Pensioners Association, said: “There has been a lot of concern and anger expressed – it’s devastating.

“There doesn’t seem to be a day goes by without something happening which is detrimental to elderly people.

“An 82-year-old man was telling me earlier that he has to wear layers and layers to bed because he won’t put his heating on. People are having to choose between food and keeping warm.

“If we are going to treat people as human beings, why are we in a situation like this? Pensioners are not looking for the sun, the moon and stars, we just want to be warm.”

Npower said customers will see annual bills jump on average by £95 for gas and £64 for electricity under the price changes, due to come into effect today.

The primary reasons for the rise, according to the supplier, are the increasing prices of wholesale gas and electricity.

Labour MP for Durham City, Roberta Blackman Woods said the answer was to invest in renewable energy. “I think it’s really important that we push ahead and try to find alternative sources of energy,” she said.

“Until we do that, we really are at the mercy of wholesale prices.”

As customers come to terms with the added financial pressure implicit in the hikes, Giuseppe Di Vita, managing director of Npower’s residential business, revealed the decision had not been taken lightly.

He said: “Today’s decision was not an easy one. We always try to protect our customers for as long as possible, but sadly, higher energy prices are a fact of life. Npower is not alone in facing these higher costs, and we expect other suppliers to follow suit very shortly.

“Anyone struggling to pay their bills, regardless of the time of year, should get in touch immediately.”

Although other suppliers are expected to increase their charges Npower’s competitors yesterday remained tight-lipped.