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Bank of England announces utility costs set to rise

Bank of England announces utility costs set to rise

Bank of England announces utility costs set to rise

It's always a hot topic among homeowners, and it could be set to become even more of a burning issue come the turn of the year: industry analysts are predicting gas and electricity bills could rise by as much as 2.5 per cent in the next five months.

The warning comes after Bank of England researchers investigated supplier and distribution costs for each of the Big Six energy companies, and predicted a rise in logistical costs for them could snowball into a big price hike for consumers.

"Continuing rises in other costs that those suppliers face, such as those associated with distribution, are likely to result in small increases in domestic energy prices," a Bank of England statement said.

Expected increases to fuel bills could spark widespread outrage as the Big Six suppliers - EDF Energy, British Gas, Scottish Power, Southern and Scottish Energy, nPower and E.On - are under increasing pressure to cut energy bills as wholesale costs have gone down.

But most energy suppliers have skirted pressure to sacrifice just some of their profits for the consumer good, instead opting to offer price freezing policies that will keep some consumers locked in to the same tariff until April 2014. It is not predicted those customers will be affected.

"This is very worrying news for consumers, and could set alarm bells ringing," said Lucy Darch, energy expert at uSwitch.com. "In the last six years, household energy bills have rocketed by £599 or 91 per cent - from £660 a year in 2006 to £1,259."

Despite the opposition price hikes are normally met with, a YouGov survey published this week revealed 81 per cent of homeowners are unaware of how much energy they use, with just one in six British homeowners being aware of their utility costs.

One way to defy Big Six price hikes is by taking control of your energy outgoings, and energy-saving solutions such as LED lighting are just the shortcut to that.