British Gas has confirmed that it has increased gas prices by 35% and electricity prices by 9% with immediate effect. The increase will see average bills for people living in and around South Cambridgeshire rise very substantially.Sebastian Kindersley, the Liberal Democrat Parliamentary Candidate for South Cambridgeshire, has said that energy companies should be compelled to use the money from a £9 billion European windfall to help protect some of the most vulnerable people from the effects of fuel poverty.The energy firms received the multi-billion-pound windfall thanks to the giveaway of free permits to emit Carbon Dioxide under the European Union’s Emissions Trading Scheme. Previous estimates have put the proceeds of that windfall at £9bn, although Ofgem estimates the true figure could be even higher.

Sebastian commented: “We are all suffering from the rise in basic household costs; for food, for travel and of course for  fuel. Why is it that that energy companies can enjoy a massive subsidy at a time when many families are facing an increasingly desperate struggle to pay their energy bills?

“This multi-billion pound windfall should be used to protect the most vulnerable people from the effects of fuel poverty. If action is not taken now then many families are going to face an increasingly tough time paying their bills this winter and those who suffer most are young families and the elderly.

“Of course we are all worried about rising prices. People want to see action from Gordon Brown, but nothing seems to be happening. Why not?”

The increase in prices by British Gas comes just a few days after EDF Energy put up gas prices by 22% and electricity prices by 17%, with other firms expected to follow suit. Consumer watchdog Energywatch said it believed the 35% gas bill rise was the biggest single increase inthe price of a utility seen to date.