Heating and Ventilating

British Gas may have announced almost £1 billion profits but it has raised the gas price it charges its customers by 35%.
The energy giant effectively imposed the single biggest rise in prices ever recorded in UK history. Centrica, the owner of British Gas has raised its prices due to a 20% drop in its profits for the first half of 2008 (group operating profit=£992m), when compared with the same period last year.

British Gas also raised its electricity price but by a less scary 9%, causing, some in the HVAC industry to nod their heads more vigorously to champion the heatpump's cause.

“A ground source heat pump can cut heating and hot water bills back by 40% or more, even against gas, a fuel once considered to be cheap', said Tony Barnes sales director at Calorex.

Heat pump manufacturer Calorex has carried out heat pump installations in partnership with E.ON which has resulted in savings of 50% or more.

“Anyone who is specifying heating for people, especially those in social housing, who risk fuel poverty as a result of these rises, needs to take a very hard look at the decisions they are taking right now as they can well be locking a home into a 20 year spiral of rising costs.”

British Gas is the second energy firm to announce a price increase in less than a week. French supplier EDF Energy hiked gas and electricity bills by 22% and 17% respectively on July 25.

The four remaining big energy firms nPower, Scottish Power, E.ON UK and Scottish & Southern Energy are expected to raise their prices before this winter.