Energy prices are set to rise even further due to the costs of environmental taxes, WM Morrison has warned.
Dalton Phillips, the CEO of WM Morrison highlighted: “The problem of high energy bills is a social problem because it is hitting the poor the hardest,” “It’s like a tax, taking money out of people’s pockets without them being able to do much about it.”
The warning comes after SSE announced that its energy prices would rise by 8.2% in the upcoming weeks with further increases set to occur in the near future. It has already alerted users that this value will be at least £25 higher by 2015 due to environmental tax currently being charged to the company.
Ed Miliband recently announced his intention to freeze energy prices for a period of 20 months if he wins the 2015 general election citing his desire to ‘return energy prices to normal’.
The issue of energy prices has dominated recent politics with it set to continue right up to the general election in two years time. Whilst Labour has advocated a price freeze, it is thought the Conservatives want to encourage more competition between energy firms in order to stop the price of fuel rising any further.
David Cameron recently announced that he reviewing the entire green tax system though any proposed changes are set to meet firm opposition from the Liberal Democrats who have long been in favour of ‘green taxes’.
The energy secretary, Ed Davey has warned that although energy prices are set to increase even further in the upcoming months that nevertheless making a decrease in the amount of green taxes would be the wrong course of action to follow.
“Most green taxes are actually social policies to help the fuel-poor manage their bills. I don’t think we want to get rid of those,’’ he stated during the Andrew Marr show.
The announcement about further price rises is set to deal another blow to Britain’s low income earners who are already set for a long, hard winter.
Government critics have called for more to be done to protect the poorest in society as they are risking leaving thousands of people without heat this winter. The most radical corners have warned that people might have to choose between food or heating this winter as the costs of living continue to increase.
Red Cross recently announced its intention to provide food aid to Briton’s in need this winter, representing the first time this has occurred since the Second World War. The rising fuel prices have added to rising cost of living debate, with studies illustrating that many people with low income will be unable to deal with price increases for much longer.
Water bills are also set to rise with Thames Water predicted to announce price increases in the next few months. The company is currently planning an 8% increase in costs that will be implemented next year. The increase will be attributed to the sewer project the company is currently embarking on which requires over £4 billion worth of funding to be enacted. The continued need for money might cause customers to continue to have to pay more in the upcoming years, the company has warned.