Dismay at big gas price rise fears

11:41pm Friday 18th July 2008

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A stark warning that gas prices could soar by 70 per cent and then remain high for the foreseeable future, has been greeted with dismay.

Gas and electricity watchdog Energywatch has called on the Government to act now to reduce the pressure on wholesale gas prices and force the industry to deliver affordable energy for Britain’s poorest consumers after the warning came in an independent report commissioned by Centrica, which owns British Gas.

Bradford debt counselling group Christians Against Poverty, said increasing numb- ers of people in the city were struggling against fast-rising fuel and food prices.

The charity’s spokesman Jonathan Priestley said the effects were already shocking and figures collected over the past six months showed that before turning to CAP for advice 22 per cent of them had been missing meals to repay debt, 37 per cent had either considered or attempted suicide and 25 per cent had experienced marital or partnership problems because of money owed.

“Increasing numbers of people are struggling to balance their books, it’s a massive problem and has desperate knock-on effects,” he said.

Pensioners’ campaigner Audrey Raistrick, of Neighbourly Care Bradford, said gas price rises would force people to live an “indecent” standard of life. And the 81-year-old, who has lobbied the Government for years calling for improved state pensions, said for some elderly people, the increases could be “fatal.”

“We need a good basic state pension. The cost of living goes up but our pension doesn’t. How do they expect us to live – or don’t they?

“What are they trying to do to us, freeze us to death? We have worked all our lives and expect a decent way of life because of that, but what do we get? This isn’t decent, it’s indecent. The Government has to step in and help us.”

Jake Ulrich, managing director of Centrica Energy, also predicted from the report that people would have to change their habits to deal with higher energy prices.

He said: “I do think we will see people change their behaviour.

“I think people will use less energy and I hate to go back to the Jimmy Carter days in the US but maybe it’s two jumpers instead of one.”

He added: “I think people will change the temperature they keep the house, they’ll be more cognisant of energy waste, they’ll buy better appliances.”

But this could be dangerous for the elderly, according to Keith Nathan, Age Concern’s chief officer in Bradford.

He said: “There’s a plethora of worrying issues that would come from this – if people turn their heating down or if they don’t use appliances for a while then switch them back on, they might not be serviced adequately or maintained to a safe level – this could put people in real difficulty and danger.”

Energywatch’s chief executive, Allan Asher, said: “The Government is right to say that the link to oil is a cause of the problems but wrong to say there is nothing that can be done.”

He added: “The Government can and should act in those areas where it can have an effect.

Action to cut the price link between gas and oil, action to improve the working of the domestic market, action to help those who can least afford to keep warm.”