Gas and electricity bills are rising four times faster in the UK

Britains energy prices have increased by 16.7 per cent over the past year.

The increase compares to the European average of 3.8 per cent, with 1.5 per cent in Germany, 1.3 in Denmark and 5.3 in Sweden. Continental energy companies have been accused of “picking the pocket” of British consumers as four of the six biggest gas and electricity firms in Britain are European-owned.

Among developed nations, only Australia (20 per cent) and Turkey (28.7 per cent) had faster price rises, the OECD figures showed. The figures were released after the Conservatives called for energy companies to be investigated for refusing to pass on price cuts to consumers.

The wholesale cost of energy has dropped sharply since the summer, but suppliers have failed to reduce what they charge customers, leading to accusations of profiteering.

British households saw their energy bills rise by £381 to £1,293 on average last year, according to price comparison website uSwitch.com.

It brings further misery to UK households which have seen their budgets squeezed by higher petrol and food costs compared to a year ago.

Will Marples, energy expert at uSwitch.com, said: “On top of this, consumers are dealing with the ongoing economic crisis while waiting for news of whether energy price cuts are going to be delivered this year or not. Whereas previously they may not have worried about how UK energy bills compared with those in Europe, or factors affecting prices, these issues are now firmly on the agenda as British consumers want to know that they are getting a fair deal.”

Energy experts suggest that British consumers suffer more than their European neighbours because of the country’s reliance on the gas market, and its lack of storage.

Britain has just 13 days’ gas storage, compared with 99 in Germany and 122 in France, making it less easy to stockpile gas when it is cheap.

Experts also warned that average prices could rise as a result of Russia cutting its gas supplies in a dispute with Ukraine.

Among the most vulnerable to price increases are pensioners, according to charities.

Paul Bates, a spokesman for Help the Aged suggested that more than 20,000 people die from preventable illnesses as a result of the cold.

He said: “Too many pensioners are facing the stark choice between heating and eating, putting their health at risk

“No older person should ever have to worry about whether they can afford to heat their homes properly in the winter.”

The Energy Retails Association said British customers have enjoyed historically low prices compared to Europe due to our reserves of natural gas in the North Sea.

She said: “The prices we now pay for our energy are more vulnerable to fluctuations.”

Source - The Telegraph