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Home   |   The Socialist 22 Feb - 1 Mar 2006   |   Join the Socialist Party

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Gas price rise the biggest in history !

BRITISH GAS is increasing prices by 22%, the second rise in six months; most household energy bills will probably now exceed £1,000. Newspapers call it the biggest gas price rise in British history.

Suzanne Muna

We're told to exercise 'choice' by switching supplier but four other major energy companies also increased prices! Energy isn't a 'consumer choice' - it's an essential service without which we cannot lead our lives. And one 'choice' we certainly don't have is to buy from a non-profit-making nationalised company.

While British Gas shareholders last year divided the spoils of £337 million profits (up 64% on 2004), families struggled to foot gas bills that grew 66% in two years.

The price rises' impact will be felt by 1.5 million UK families living in 'fuel poverty' (or spending over 10% of income on energy costs).

The number of such families had come down from a staggering four million in 2000 but now another 250,000 families are tipped over the edge. The social costs include increased ill-health, thousands of winter deaths, more social exclusion and an adverse impact on children's education.

The 1986 flotation of British Gas was the most expensive privatisation of a public utility. It's still costing us dear. Those with big share portfolios grow very fat indeed, while most of us struggle to pay hyper-inflating household bills. Very few of us will see wage increases of comparable size.

The poll tax impoverished many families until it was defeated by a strong working-class movement comprising public demonstrations and 'can't pay, won't pay' campaigns. Perhaps a similar fight could achieve the renationalisation of public utilities, transport and services!

Home   |   The Socialist 22 Feb - 1 Mar 2006   |   Join the Socialist Party

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