The UK households findthemselves caught in a severe financial crisis owing to the imminent hike inenergy prices across the country, thanks to rising gas prices in the wholesalemarket.

According to the news on  Telegraph  , the decision of raisingcharges by Npower, one of the leading power suppliers, is expected to push theaverage household energy bill in the UK to record ₤1,000 per year.

With over 10% increase being introduced, annual gas andelectricity bills for over four million homes will shoot up by as much as ₤180.Industry analysts opine that the trend will spread to other energy companies aswell, resulting in similar hikes for the rest of the 22 Million homes in thecountry.

Npower blames the increases on the escalating gas prices inthe wholesale market triggered by rising oil prices that reached a record highof $100 a barrel. The primary cause for the price hike is the cold weatherforcing Britain to turn to Europe for gas imports during the first week ofJanuary 2008. Even wholesale prices have surged as more and more European firmsturned to the comparatively liberal UK market for supplies as a cost effectivealternative.

The credit crisis has been a cause for worry for consumerswho are grappling with serious post-Christmas financial crunch, solid mortgagepayments, higher food bills and record petrol prices. Consumers find the pricehike unfair arguing that the inefficiency of the gas market is taking its tollon families. The lives of the British people are being adversely affected withdismal housing conditions and meager incomes compelling them to compromise onwarmth and comfort.

The cause of the consumer is being taken up by localsuppliers with the contention that the significant increase in wholesale energyprices during the winter months from December 2007 to January 2008 has alwaysbeen in winter. Consumers are thus twice as unfortunate.

A RNCOS Research Analystfeels that the imminent increases in energy prices would bring harsh times forthe UK consumers. It reveals the desperation of the UK energy suppliers toresort to price hikes. For the consumer to continue with high energy prices,the convenient option lies in using alternative energy. By doing so, they cancope with the price crisis as well as conform to the environmental concerns inthe UK.

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