Veiled warning from Centrica over household energy prices

Centrica's Interim Management Statement out today warns of the impact higher wholesale energy prices are having on suppliers and hints that consumers could end up seeing further price rises as a result.

The IMS points out that: "the forward wholesale prices of gas and power for delivery in winter 2011/12 are currently around 25% higher than prices last winter, with end-user prices yet to reflect this higher wholesale market price environment."

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This is the second of the big six suppliers to talk publicly of the impact higher wholesale prices are having on their business. Clearly they are preparing the ground for a second round of price increases and consumers should definitely see this as a warning shot across the bows. That said, I would urge suppliers to hold fire for as long as they can. The price of oil has now fallen and the pressure suppliers are feeling could yet ease - given this I would urge them to keep a steady finger on the trigger and to protect consumers for as long as possible. It would be a shame for households to feel the pain of another round of price hikes if it later turns out to have been unnecessary."