Gas Debt On The Increase
Just when you thought the cost of your energy bills couldn’t get any higher; Debt looms on the horizon as the cost of gas threatens to rise.
A demand for over £12 billion has been requested for upgrades or improvements to our gas supply, from the National Grid who control half of the country’s gas mains and three other companies who own the rest.
Ofgem are currently replacing all medium-pressure, ductile iron gas mains which are within 30 metres of people’s homes, as they are more likely to fracture and corrode thus, causing major accidents and in some cases, even death. This is a massive project comprising of 78,000 km of cast-iron and 13,000 km of low-pressure ductile iron mains. Add to this the labour charges and the country has a massive debt on its hands.
We already donate 20% of our gas bills to these companies which works out at around £100 per year, but the increasing cost of replacing and maintaining the pipes have increased, thus pushing customers into even further debt to keep warm this winter.
Householders in the UK could be left with a debt in the region of £1.3 billion thus adding an additional £50 to each householder’s gas bill within the next five years.
Gas companies such as British Gas have already come under public criticism for their inflated prices. Companies are finding it difficult to compete against each other, as customers try to combat debt by
switching to suppliers who offer the most economical plan.
