Energy costs on rise, says Moneyextra

Despite price cuts in the first six months, energy costs look certain to rise again this year, says Moneyextra.com. The oil price rose by 20 per cent in June and July and has been flirting with record highs at the height of summer.

Some analysts are talking about 100 a barrel by the end of the year as demand rises in the winter months. That doesn't just mean more expensive petrol on the forecourts - it means more expensive utility bills as well, both electricity and gas.

British Gas has already warned it won't be making any further price cuts, after two reductions since March. In the energy markets, wholesale gas prices for this winter are already close to all-time highs.

Paying too much for your gas or electricity? Find out how much you could save with a new supplier

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Robin Amlt of Moneyextra.com said, "There's been a lot of hot air in the press about British Gas and its profits. But the simple fact is that our fuel bills are likely to be going up over the next six months.

"With higher mortgage costs as well, thanks to rising interest rates, it's more important than ever that households keep an eye on their spending, making sure they're getting the best value for money in gas and electricity."

Moneyextra.com recommends you take independent financial advice before acting on any article

2007-08-07 11:09:15 © Moneyextra.com