A campaigner for pensioners has warned that many elderly people could be faced with a stark choice this winter if energy companies decide to increase prices.
Jim McAulay, chairman of the Dundee Pensioners Forum, believes that further increases in the cost of gas and electricity could leave many with a choice of “heating or eating” when the cold weather returns.
His warning comes after Centrica, owner of British Gas, announced the wholesale price of gas and power for delivery this coming winter is around 25% higher than last year costs that are likely to be passed onto customers.
With Britain having experienced two extreme winters in a row, all households have been feeling the pinch of ever-increasing energy prices.
However, with the elderly particularly vulnerable during cold spells, Mr McAulay has genuine concerns that another price rise could place some in the ultimate predicament.
He told The Courier, “These companies are making millions every year and putting the prices up.
“When the price of energy goes up, they put their prices up very quickly. However, when the prices go down they are very slow to reduce theirs.
“It will get to the stage where pensioners have to choose between heating or eating that is the way it’s going.”
As wholesale costs of gas increase, energy firms are expected to absorb a small percentage of this at the expense of profits.
However, British Gas last year reported record profits of £742 million, partly as a result of the severity of recent winters.
Following Centrica’s announcement last week, it is likely that other energy providers will also pave the way for price increases, a source of anger to Mr McAulay who believes that the government should step in to protect the elderly from higher bills.
“The government should seriously consider nationalising the energy companies again,” he said.
“Companies don’t care about customers to them it is all about profits and paying dividends to shareholders.”
The Bank of England has warned that households could expect a gas price hike of 15%, with electricity rising by 10% per household.
Tom Lyon, energy expert at price comparison website uSwitch.com, said, “If costs do increase as predicted the average dual fuel bill could hit a record high of £1279.”