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US Federal Reserve chairman sends stocks falling with fears over recovery

Ben Bernanke says US economic recovery is slow and uneven but appears to rule out third round of fiscal stimulus Stock markets have dropped after a speech by the US Federal Reserve chairman, Ben Bernanke, raised fears over the global economic recovery. Shares fell broadly in London, echoing a late sell-off on Wall Street, after Bernanke appeared to rule out further quantitative easing. Speaking to bankers in Atlanta on Tuesday night, Bernanke said the US economic recovery was “frustratingly slow” and “uneven” but stopped short of indicating that the Federal Reserve would pump more cash into the economy. There had been speculation before the speech that the Fed chair might hint at a third round of fiscal stimulus measures, dubbed QE3, following recent weak economic data . US markets finished down on the news, with the Dow Jones falling 19 points by the close. The MSCI index of Asia-Pacific stocks fell 0.7% overnight, to add to the sell-off. The FTSE 100 fell in early trading too, down 38 points at 5826. According to Chris Weston of IG Index, Bernanke’s comments have left traders “scratching around” for guidance on whether the world economy is faltering. Gary Jenkins of Evolution Securities said Bernanke’s speech had “something for everyone with the exception of those who might favour QE3″. “He has to be careful what he says about further quantitative easing or it could become a self-fulfilling prophecy. He did say that this quarter’s economic activity has been hampered by supply chain disruptions associated with the Japanese earthquake and tsunami, the effects of which are likely to dissipate over the coming months. Other Fed members were also speaking yesterday with much the same message coming through: monetary policy is likely to remain accommodative for some time yet, but further QE is looking unlikely at this stage,” Jenkins said. A “frustratingly slow” recovery In the speech, Bernanke said the US recovery was clearly being held back by the troubled jobs and housing markets but there were indications that petrol prices would fall and the impact of Japan’s nuclear disaster on manufacturing was on the wane. “Overall the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers,” Bernanke said. A spate of weak economic data was capped by a report last week that showed the US added only 54,000 jobs in May, the fewest since September last year. The unemployment rate in May rose to 9.1%, from 9% in April. The parlous nature of the US jobs market was underlined once more on Tuesday as the labour department reported that businesses had fewer job openings in April with employers posting 3m ads for jobs in April, down from 3.1m in March. Gavan Nolan, director of credit research at Markit, argued that there were two schools of thought on the economy at present. “The first believes that recent data weakness indicates that demand is dwindling and the economy is in need of further stimulus. The second is convinced that we are in a transitory phase that will abate once the effects of the Japanese earthquake and higher commodity prices are less acute,” Nolan said. US economy Ben Bernanke Stock markets Economics United States Alex Hawkes Dominic Rushe guardian.co.uk

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US Federal Reserve chairman sends stocks falling with fears over recovery

Ben Bernanke says US economic recovery is slow and uneven but appears to rule out third round of fiscal stimulus Stock markets have dropped after a speech by the US Federal Reserve chairman, Ben Bernanke, raised fears over the global economic recovery. Shares fell broadly in London, echoing a late sell-off on Wall Street, after Bernanke appeared to rule out further quantitative easing. Speaking to bankers in Atlanta on Tuesday night, Bernanke said the US economic recovery was “frustratingly slow” and “uneven” but stopped short of indicating that the Federal Reserve would pump more cash into the economy. There had been speculation before the speech that the Fed chair might hint at a third round of fiscal stimulus measures, dubbed QE3, following recent weak economic data . US markets finished down on the news, with the Dow Jones falling 19 points by the close. The MSCI index of Asia-Pacific stocks fell 0.7% overnight, to add to the sell-off. The FTSE 100 fell in early trading too, down 38 points at 5826. According to Chris Weston of IG Index, Bernanke’s comments have left traders “scratching around” for guidance on whether the world economy is faltering. Gary Jenkins of Evolution Securities said Bernanke’s speech had “something for everyone with the exception of those who might favour QE3″. “He has to be careful what he says about further quantitative easing or it could become a self-fulfilling prophecy. He did say that this quarter’s economic activity has been hampered by supply chain disruptions associated with the Japanese earthquake and tsunami, the effects of which are likely to dissipate over the coming months. Other Fed members were also speaking yesterday with much the same message coming through: monetary policy is likely to remain accommodative for some time yet, but further QE is looking unlikely at this stage,” Jenkins said. A “frustratingly slow” recovery In the speech, Bernanke said the US recovery was clearly being held back by the troubled jobs and housing markets but there were indications that petrol prices would fall and the impact of Japan’s nuclear disaster on manufacturing was on the wane. “Overall the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers,” Bernanke said. A spate of weak economic data was capped by a report last week that showed the US added only 54,000 jobs in May, the fewest since September last year. The unemployment rate in May rose to 9.1%, from 9% in April. The parlous nature of the US jobs market was underlined once more on Tuesday as the labour department reported that businesses had fewer job openings in April with employers posting 3m ads for jobs in April, down from 3.1m in March. Gavan Nolan, director of credit research at Markit, argued that there were two schools of thought on the economy at present. “The first believes that recent data weakness indicates that demand is dwindling and the economy is in need of further stimulus. The second is convinced that we are in a transitory phase that will abate once the effects of the Japanese earthquake and higher commodity prices are less acute,” Nolan said. US economy Ben Bernanke Stock markets Economics United States Alex Hawkes Dominic Rushe guardian.co.uk

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Regulator to review care system after Winterbourne View abuse scandal

Dame Jo Williams, chair of the Care Quality commission, pledges rethink of residential care for people with learning difficulties following exposé of abuse at Bristol hospital Like many viewers, Dame Jo Williams admits she cried while watching the BBC Panorama programme that exposed a regime of callous abuse of people with learning disabilities at a private hospital near Bristol . As a former chief executive of learning disability charity Mencap, and someone who, as a social worker, helped such people get out of long-stay hospitals and establish purposeful lives in the community, she felt the shock particularly keenly. But Williams now chairs the Care Quality Commission (CQC), the body regulating the care sector in England, which is being blamed for failing to detect and stop what was going on at the hospital, and critics will have little sympathy. Since the programme was broadcast last week, the CQC has been inundated by hostile telephone calls and emails, including some wishing equivalent ill-treatment or death on its 1,600 staff. The regional director who appeared on the programme has required police protection. “I’ve been around a long time, but I was very surprised that the public would seek to take their anger out on someone who put themselves forward to apologise,” says Williams, 62, who within 24 hours of the broadcast had described the CQC’s failure as “unforgivable” and issued an unreserved apology. It seems clear that the programme will have a profound, possibly cathartic, effect on the way in which society cares for people whose intellectual capacity and behaviour present particular difficulties. At a meeting on 8 June, the CQC will bring together experts, including former users of services, to discuss how it should set about the task, agreed by ministers in the aftermath of the broadcast, of vetting 150 private and NHS units similar to Winterbourne View, the hospital at the centre of the storm. This will not be simply a check for any similar problems. “Root-and-branch” inspections of that kind are being undertaken hurriedly at 30 units run by Castlebeck, the private sector operator of Winterbourne View, under a separate programme. Rather, the wider assessments will take a fundamental look at the very culture and purpose of residential units for learning-disabled people, questioning a system that had left most Winterbourne View “patients” warehoused for at least a year while supposedly undergoing assessment and treatment at a cost each of £3,500 a week. “It felt like those people, staff and people who were resident there, were locked away together and a sub-culture developed which was led by someone who clearly had no training, but importantly didn’t seem to regard the people as individuals. And, well, they were robbed of their humanity,” says Williams. While stressing that she in no way seeks to minimise the CQC’s culpability in the affair, she admits to feeling that responsibility should have been shared more evenly among the regulator, the local authority and NHS commissioners of care and, particularly, the provider. “Am I resentful? I don’t know whether that’s the right word,” she says. “I probably was very surprised by the lack of balance, I think that’s what I’d say.” The CQC is carrying out a thorough audit of what happened to the alerts raised by Terry Bryan, the former charge nurse at Winterbourne View, who tried to blow the whistle to the authorities and ended up going to Panorama in frustration. Williams has since spoken to him – she describes him as “extraordinarily reasonable” and “prepared to be very helpful to us” – and he has accepted an invitation to join the 8 June meeting. Initial findings from the audit indicate that Bryan raised his concerns with his manager on 11 October last year and discussions were subsequently held with South Gloucestershire care commissioners, resulting in a letter to the CQC on 29 November saying that a formal safeguarding meeting involving all agencies would be held. However, that meeting, which led to Castlebeck agreeing to take remedial measures, did not happen until 1 February this year, by which time Bryan had twice sought to contact the CQC but had received only automated replies to his emails. In an interview with the BBC’s Politics Show West on Sunday , Bryan said the abuse filmed secretly by an undercover Panorama reporter was far worse than anything he had witnessed or reported. “I saw bad practice; I saw bad attitudes; I saw chaos among the staff team – that’s all.” Nevertheless, Williams says that Bryan’s emails, or the gist of them, should have been relayed to the CQC inspector responsible for Winterbourne View. They should have triggered action by the inspector. Although the audit of events remains uncompleted, and it is too soon to draw conclusions, she thinks “there may never be a rational explanation; we all make mistakes”. The case has raised questions about both the CQC’s remit and its resources. Many commentators have been surprised to discover that the organisation has no brief to take up individual complaints about care, referring them instead to the provider, the commissioner and the ombudsman in that order. Asked to explain the difference between a complaint and whistleblowing, which the CQC says it does take up, Williams struggles. She accepts there may be a need to look again at the distinction and how it is explained to the public and media. But she stresses that if the system is working properly, an inspector will be told that an individual has contacted the CQC to complain about a care service on their patch, even though the CQC will not itself pursue the complaint, in order to inform the inspector’s general view of the service. On resources, critics have seized on the fact that the CQC’s annual budget of £164m is 30% less than the combined funding of the organisations it succeeded in 2009, even though it is being expected to do more. As well as NHS trusts, care homes, care agencies and dental practices, the body is due next year to start regulating GP practices. According to Williams, each of the full quota of 900 inspectors – and until recently there have been up to 130 frozen vacancies – handles a mixed portfolio of some 50 different provider units and makes judgment calls, based on evidence of relative risk, about when and how often to visit (almost always unannounced, contrary to widespread belief). “People have said to me: ‘Why aren’t you making a great fuss about more resources?’” she says. “But any claim for additional resources in the current climate, in any climate, has to be based on hard data and evidence about where a shortfall is and what we need to do to address that shortfall.” Might she make a great fuss if the CQC’s current analysis of its resource needs produces such hard evidence? “We might, absolutely.” Even in the unlikely event of the CQC receiving a big boost to its budget, Williams emphasises that the primary responsibility for safeguarding the welfare of people in the care system will always rest with the care provider. “My challenge to every provider who watched that programme is: ‘How do you know that the people you are offering services to are getting a service that protects them, promotes their welfare and helps them develop and enjoy a quality of life?’” She admits that she did consider resigning over the programme. “Of course I have considered it,” she says. “But in a strange sort of way, it makes me even more determined to try and give CQC the best oversight and leadership I possibly can.” Morale in the organisation was “very, very low” after the broadcast, Williams says. “People felt under the cosh. But they want to understand what’s gone wrong and we will certainly be looking at that from an executive point of view, and from a board point of view, and then making whatever changes we have to to ensure that we learn from this.” Learning disability Disability Social care NHS Health David Brindle guardian.co.uk

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Syria’s Assad faces new sanctions by UN and European Union

Draft resolution being promoted at security council by Britain and France stops short of Libya-style no-fly zone Britain and France are pushing for a UN security council resolution condemning a crackdown on anti-government protesters in Syria. The foreign secretary, William Hague, told parliament that the security council had a “responsibility to speak out” and warned of new EU sanctions unless demands were met. Hague said diplomats were circulating a draft resolution to secure the necessary support from the nine council members. The French foreign minister, Alain Juppé, said it was “inconceivable” that the UN would remain silent while the situation in Syria worsened, and it was “a question of days, maybe hours” before the council voted on the draft resolution. Diplomatic pressure on the regime of President Bashar al-Assad has increased amid concerns that the Syrian security forces are preparing an all-out assault on a town where more than 120 troops were reportedly killed over the weekend. Columns of government tanks have surrounded Jisr al-Shughour, near the Turkish border, and most of the town’s 41,000 people are reported to have fled after armed clashes at the weekend. Witnesses had reported long lines of tanks and thousands of troops heading towards the town on Wednesday, according to opposition activist Mustafa Osso. Many of the troops were from the army’s 4th division commanded by Assad’s younger brother Maher, Osso told the Associated Press. The town has largely been abandoned. According to three men who stayed behind, the hospital stood empty and the intelligence headquarters, scene of an uprising on Sunday, was a looted and empty shell. “Most people have left the town because they are scared. They know the deaths will be high,” an activist told Reuters. Hague said the proposed security council resolution would bring action against Syria in line with measures imposed on other countries in the region facing political upheaval. “We must show the same resolve and purpose in supporting change and democratic development elsewhere in the region,” Hague said. The draft resolution falls short of the no-fly zone mandated against Libya that launched a Nato bombing campaign against Muammar Gaddafi’s forces. Russia appears opposed to action against Assad and other security council members such as Brazil and India are reported to be wary of a resolution they fear could foreshadow military intervention Russia’s envoy to the EU, Vladimir Chizhov, said: “The prospect of a UN security council resolution that’s along the same lines as resolution 1973 on Libya will not be supported by my country … The use of force, as Libya shows, does not provide answers.” The draft calls on Assad and his government to meet the demands of pro-democracy protesters, free “prisoners of conscience”, lift internet restrictions and co-operate with UN human rights officials. It does not detail or threaten any UN sanctions. “We are working to persuade other countries that the security council has a responsibility to speak out,” Hague said. “President Assad is losing legitimacy and should reform or step aside.” Hague said an EU arms embargo, asset freeze and visa ban on 13 officials imposed against Syria last month had proved successful but tougher measures could follow. “We must show the same resolve and purpose in supporting change and democratic development elsewhere in the region, for example using the economic appeal of the EU to act as a magnet for positive change in the region. “Since my last statement our efforts to agree EU sanctions against President Assad and other individuals responsible for the violence and repression in Syria have been successful. We are exploring with our European partners the potential for further sanctions if the violence continues.” Unlike Gaddafi in the early days of the Libya rebellion, Assad has managed to keep his government together. On Tuesday the network France 24 aired audio it said was of the Syrian ambassador to France issuing a stinging resignation; less than an hour later Syrian state television broadcast different audio of a woman’s voice denying she had quit and threatening to sue the French network. It was not possible to reconcile the two accounts. More than 1,000 people have been killed in more than three months of demonstrations in Syria. Syria Bashar Al-Assad Middle East Arab and Middle East unrest United Nations European Union Barry Neild Martin Chulov guardian.co.uk

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Fukushima nuclear plant may have suffered ‘melt-through’, Japan admits

Fuel rods have probably breached containment vessels – a more serious scenario than core meltdown – according to report Molten nuclear fuel in three reactors at the Fukushima Daiichi power plant is likely to have burned through pressure vessels, not just the cores, Japan has said in a report in which it also acknowledges it was unprepared for an accident of the severity of Fukushima. It is the first time Japanese authorities have admitted the possibility that the fuel suffered “melt-through” – a more serious scenario than a core meltdown. The report, which is to be submitted to the International Atomic Energy Agency (IAEA), said fuel rods in reactors No 1, 2 and 3 had probably not only melted, but also breached their inner containment vessels and accumulated in the outer steel containment vessels. The plant’s operator, Tokyo Electric Power (Tepco), says it believes the molten fuel is being cooled by water that has built up in the bottom of the three reactor buildings. The report includes an apology to the international community for the nuclear crisis – the world’s worst since Chernobyl in 1986 – and expresses “remorse that this accident has raised concerns around the world about the safety of nuclear power generation”. The prime minister, Naoto Kan, said: “Above all, it is most important to inform the international community with thorough transparency in order for us to regain its confidence in Japan.” The report comes a day after Japan’s nuclear safety agency said the amount of radiation that leaked from Fukushima Daiichi in the first week of the accident may have been more than double that initially estimated by Tepco. The 750-page report, compiled by Japan’s emergency nuclear task force, concedes that the country was wrongfooted by the severity of the accident, which occurred after the plant was struck by waves more than 14 metres high following the earthquake on 11 March. “We are taking very seriously the fact that consistent preparation for severe accidents was insufficient,” the report said. “In light of the lessons learned from the accident, Japan has recognised that a fundamental revision of its nuclear safety preparedness and response is inevitable.” The nuclear task force’s head, Goshi Hosono, said Tepco had failed to adequately protect plant workers early on in the crisis, and had provided inadequate information about radiation leaks. About 7,800 workers had been involved in the battle to stabilise the plant as of late May, the report said. While their average exposure dose was well within safe limits, “a certain number” may have been exposed to more than 250 millisieverts per year, the maximum allowable dose under revised government guidelines for Fukushima workers. The report acknowledged that bureaucratic red tape, and the division of responsibilities across several government agencies, had hampered the response to the accident. It said the government would separate the country’s nuclear safety watchdog from the trade and industry ministry, a recommendation made earlier this month by a team of experts from the IAEA . The trade and industry minister, Banri Kaieda, said Japan would share all available data and co-operate with the IAEA. “Our country bears a serious responsibility to provide data to the international community with maximum transparency, and to actively contribute to nuclear safety,” he said. The most urgent problem facing workers at Fukushima Daiichi is how to deal with vast quantities of highly radioactive water that has accumulated in reactor buildings and basements and in ditches. The estimated 100,000 tonnes of contaminated liquid – runoff from water used to douse overheating reactors – is hampering efforts to repair the plant’s cooling systems. Tepco has said it hopes to have a system in place by the middle of the month to remove radioactive substances from the water, enabling it to be reused to cool reactors. Japan disaster Nuclear power Japan Energy Natural disasters and extreme weather Justin McCurry guardian.co.uk

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Fukushima nuclear plant may have suffered ‘melt-through’, Japan admits

Fuel rods have probably breached containment vessels – a more serious scenario than core meltdown – according to report Molten nuclear fuel in three reactors at the Fukushima Daiichi power plant is likely to have burned through pressure vessels, not just the cores, Japan has said in a report in which it also acknowledges it was unprepared for an accident of the severity of Fukushima. It is the first time Japanese authorities have admitted the possibility that the fuel suffered “melt-through” – a more serious scenario than a core meltdown. The report, which is to be submitted to the International Atomic Energy Agency (IAEA), said fuel rods in reactors No 1, 2 and 3 had probably not only melted, but also breached their inner containment vessels and accumulated in the outer steel containment vessels. The plant’s operator, Tokyo Electric Power (Tepco), says it believes the molten fuel is being cooled by water that has built up in the bottom of the three reactor buildings. The report includes an apology to the international community for the nuclear crisis – the world’s worst since Chernobyl in 1986 – and expresses “remorse that this accident has raised concerns around the world about the safety of nuclear power generation”. The prime minister, Naoto Kan, said: “Above all, it is most important to inform the international community with thorough transparency in order for us to regain its confidence in Japan.” The report comes a day after Japan’s nuclear safety agency said the amount of radiation that leaked from Fukushima Daiichi in the first week of the accident may have been more than double that initially estimated by Tepco. The 750-page report, compiled by Japan’s emergency nuclear task force, concedes that the country was wrongfooted by the severity of the accident, which occurred after the plant was struck by waves more than 14 metres high following the earthquake on 11 March. “We are taking very seriously the fact that consistent preparation for severe accidents was insufficient,” the report said. “In light of the lessons learned from the accident, Japan has recognised that a fundamental revision of its nuclear safety preparedness and response is inevitable.” The nuclear task force’s head, Goshi Hosono, said Tepco had failed to adequately protect plant workers early on in the crisis, and had provided inadequate information about radiation leaks. About 7,800 workers had been involved in the battle to stabilise the plant as of late May, the report said. While their average exposure dose was well within safe limits, “a certain number” may have been exposed to more than 250 millisieverts per year, the maximum allowable dose under revised government guidelines for Fukushima workers. The report acknowledged that bureaucratic red tape, and the division of responsibilities across several government agencies, had hampered the response to the accident. It said the government would separate the country’s nuclear safety watchdog from the trade and industry ministry, a recommendation made earlier this month by a team of experts from the IAEA . The trade and industry minister, Banri Kaieda, said Japan would share all available data and co-operate with the IAEA. “Our country bears a serious responsibility to provide data to the international community with maximum transparency, and to actively contribute to nuclear safety,” he said. The most urgent problem facing workers at Fukushima Daiichi is how to deal with vast quantities of highly radioactive water that has accumulated in reactor buildings and basements and in ditches. The estimated 100,000 tonnes of contaminated liquid – runoff from water used to douse overheating reactors – is hampering efforts to repair the plant’s cooling systems. Tepco has said it hopes to have a system in place by the middle of the month to remove radioactive substances from the water, enabling it to be reused to cool reactors. Japan disaster Nuclear power Japan Energy Natural disasters and extreme weather Justin McCurry guardian.co.uk

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Scottish Power raises gas bills by 19%

Utility provider implements ‘shocking’ 19% rise in gas prices and 10% rise in electricity prices, as consumers are urged to switch and fix Scottish Power is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, blaming the increases on a rise in wholesale energy costs and volatility in global energy markets. The rise, which will affect 2.4m households and add £175 a year – or 48p a day – to the average dual fuel customer’s bill, was described as a “body blow for consumers” by Consumer Focus . Scottish Power, which last increased prices in November 2010 – raising gas bills by 2% and electricity by 8.9% – said it will notify customers from 11 June, giving them at least 30 days’ notice before the price change is due to take effect. Raymond Jack, Scottish Power’s UK retail director, said: “Wholesale prices for gas and electricity have increased significantly since the end of last year, and continuing unrest in global energy markets means future prices are volatile. We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers. “The rising burden of non-energy costs faced by Britain’s energy suppliers – including the cost of meeting government environmental and social programmes and the cost of distributing electricity on the national grid – has also placed further upward pressure on energy bills.” But the energy provider was blasted by consumer groups who believe its move could prompt a wave of further price rises from the other “big five” energy providers just months after last winter’s price rises. Audrey Gallacher, head of energy at Consumer Focus, said: “This huge increase will be a body blow for consumers, and we fear other firms will follow Scottish Power’s lead. Companies have been softening customers up for price rises for months, but customers will shocked at the scale of this rise. “We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.” Last winter the big six energy suppliers all announced price rises, with E.ON adding 9% to electricity prices and 3% to gas prices, while British Gas raised both its gas and electricity prices by 7%. Scottish and Southern Energy increased gas prices by 9.4% and npower added 5.1% to gas and electricity prices. EDF raised electricity bills by 7.5% and gas by 6.5%. Householders were warned by British Gas’s parent company Centrica in May to brace themselves for higher gas and electricity bills this winter, and to consider switching to a fixed-price tariff if they want to avoid the pain come December. Centrica suggested in a statement to the City that domestic gas and electricity prices are now significantly lagging behind wholesale prices, which it said have risen by a quarter compared with last year. ‘Under investigation’ Energy regulator Ofgem recently conducted its retail market review of the energy sector, identifying a number of problem areas such as consumer trust, overly-complicated tariffs and unfair pricing. Gallacher said: “It is ironic the [Scottish Power] announcement comes exactly when the regulator is deciding whether energy firms are serious about treating consumers properly and if energy prices are fair. Ofgem has put the big six in the dock, saying suppliers have been quicker to raise prices than to cut them and are bamboozling consumers with complex tariffs. Scottish Power itself is under investigation by the regulator for unfair pricing and misselling. “Suppliers say they have no choice when costs go up, but no one else really knows if energy prices are fair. When this affects the cost of keeping warm and well, it is not an acceptable state of affairs. Energy suppliers are in a deep, deep hole on consumer trust. Now would be a good time for Scottish Power and the others to stop digging deeper and show that they understand what their customers want – fair pricing, fair selling and fair treatment.” Consumer group Which? argues that all energy tariffs should be structured in the same way so that customers can easily compare different deals. Executive director Richard Lloyd said: “This is yet another example of the ‘big six’ blaming the wholesale energy market for increases to domestic customers’ bills, but energy companies have a lot of work to do to convince consumers that energy prices are fair. “Greater transparency about exactly what is driving retail price hikes might help persuade consumers that energy companies are playing fair.” A Scottish Power spokesman said 700,000 households will be protected from the latest price rises because they are on capped or fixed tariffs. A spokesman for Moneysupermarket.com said: “This is a huge increase. Now really is the time to get on to the best-priced energy tariff for your usage level and area you live. “The cheapest online energy tariff is currently Online Saver 10 offered by EDF Energy with average annual bills of £940 but, in the face of rising prices, opting for the market-leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009, is the best way to safeguard against further price increases from the energy giants.” Energy bills Household bills Consumer affairs Family finances Utilities Mark King guardian.co.uk

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Scottish Power raises gas bills by 19%

Utility provider implements ‘shocking’ 19% rise in gas prices and 10% rise in electricity prices, as consumers are urged to switch and fix Scottish Power is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, blaming the increases on a rise in wholesale energy costs and volatility in global energy markets. The rise, which will affect 2.4m households and add £175 a year – or 48p a day – to the average dual fuel customer’s bill, was described as a “body blow for consumers” by Consumer Focus . Scottish Power, which last increased prices in November 2010 – raising gas bills by 2% and electricity by 8.9% – said it will notify customers from 11 June, giving them at least 30 days’ notice before the price change is due to take effect. Raymond Jack, Scottish Power’s UK retail director, said: “Wholesale prices for gas and electricity have increased significantly since the end of last year, and continuing unrest in global energy markets means future prices are volatile. We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers. “The rising burden of non-energy costs faced by Britain’s energy suppliers – including the cost of meeting government environmental and social programmes and the cost of distributing electricity on the national grid – has also placed further upward pressure on energy bills.” But the energy provider was blasted by consumer groups who believe its move could prompt a wave of further price rises from the other “big five” energy providers just months after last winter’s price rises. Audrey Gallacher, head of energy at Consumer Focus, said: “This huge increase will be a body blow for consumers, and we fear other firms will follow Scottish Power’s lead. Companies have been softening customers up for price rises for months, but customers will shocked at the scale of this rise. “We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.” Last winter the big six energy suppliers all announced price rises, with E.ON adding 9% to electricity prices and 3% to gas prices, while British Gas raised both its gas and electricity prices by 7%. Scottish and Southern Energy increased gas prices by 9.4% and npower added 5.1% to gas and electricity prices. EDF raised electricity bills by 7.5% and gas by 6.5%. Householders were warned by British Gas’s parent company Centrica in May to brace themselves for higher gas and electricity bills this winter, and to consider switching to a fixed-price tariff if they want to avoid the pain come December. Centrica suggested in a statement to the City that domestic gas and electricity prices are now significantly lagging behind wholesale prices, which it said have risen by a quarter compared with last year. ‘Under investigation’ Energy regulator Ofgem recently conducted its retail market review of the energy sector, identifying a number of problem areas such as consumer trust, overly-complicated tariffs and unfair pricing. Gallacher said: “It is ironic the [Scottish Power] announcement comes exactly when the regulator is deciding whether energy firms are serious about treating consumers properly and if energy prices are fair. Ofgem has put the big six in the dock, saying suppliers have been quicker to raise prices than to cut them and are bamboozling consumers with complex tariffs. Scottish Power itself is under investigation by the regulator for unfair pricing and misselling. “Suppliers say they have no choice when costs go up, but no one else really knows if energy prices are fair. When this affects the cost of keeping warm and well, it is not an acceptable state of affairs. Energy suppliers are in a deep, deep hole on consumer trust. Now would be a good time for Scottish Power and the others to stop digging deeper and show that they understand what their customers want – fair pricing, fair selling and fair treatment.” Consumer group Which? argues that all energy tariffs should be structured in the same way so that customers can easily compare different deals. Executive director Richard Lloyd said: “This is yet another example of the ‘big six’ blaming the wholesale energy market for increases to domestic customers’ bills, but energy companies have a lot of work to do to convince consumers that energy prices are fair. “Greater transparency about exactly what is driving retail price hikes might help persuade consumers that energy companies are playing fair.” A Scottish Power spokesman said 700,000 households will be protected from the latest price rises because they are on capped or fixed tariffs. A spokesman for Moneysupermarket.com said: “This is a huge increase. Now really is the time to get on to the best-priced energy tariff for your usage level and area you live. “The cheapest online energy tariff is currently Online Saver 10 offered by EDF Energy with average annual bills of £940 but, in the face of rising prices, opting for the market-leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009, is the best way to safeguard against further price increases from the energy giants.” Energy bills Household bills Consumer affairs Family finances Utilities Mark King guardian.co.uk

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Scottish Power raises gas bills by 19%

Utility provider implements ‘shocking’ 19% rise in gas prices and 10% rise in electricity prices, as consumers are urged to switch and fix Scottish Power is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, blaming the increases on a rise in wholesale energy costs and volatility in global energy markets. The rise, which will affect 2.4m households and add £175 a year – or 48p a day – to the average dual fuel customer’s bill, was described as a “body blow for consumers” by Consumer Focus . Scottish Power, which last increased prices in November 2010 – raising gas bills by 2% and electricity by 8.9% – said it will notify customers from 11 June, giving them at least 30 days’ notice before the price change is due to take effect. Raymond Jack, Scottish Power’s UK retail director, said: “Wholesale prices for gas and electricity have increased significantly since the end of last year, and continuing unrest in global energy markets means future prices are volatile. We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers. “The rising burden of non-energy costs faced by Britain’s energy suppliers – including the cost of meeting government environmental and social programmes and the cost of distributing electricity on the national grid – has also placed further upward pressure on energy bills.” But the energy provider was blasted by consumer groups who believe its move could prompt a wave of further price rises from the other “big five” energy providers just months after last winter’s price rises. Audrey Gallacher, head of energy at Consumer Focus, said: “This huge increase will be a body blow for consumers, and we fear other firms will follow Scottish Power’s lead. Companies have been softening customers up for price rises for months, but customers will shocked at the scale of this rise. “We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.” Last winter the big six energy suppliers all announced price rises, with E.ON adding 9% to electricity prices and 3% to gas prices, while British Gas raised both its gas and electricity prices by 7%. Scottish and Southern Energy increased gas prices by 9.4% and npower added 5.1% to gas and electricity prices. EDF raised electricity bills by 7.5% and gas by 6.5%. Householders were warned by British Gas’s parent company Centrica in May to brace themselves for higher gas and electricity bills this winter, and to consider switching to a fixed-price tariff if they want to avoid the pain come December. Centrica suggested in a statement to the City that domestic gas and electricity prices are now significantly lagging behind wholesale prices, which it said have risen by a quarter compared with last year. ‘Under investigation’ Energy regulator Ofgem recently conducted its retail market review of the energy sector, identifying a number of problem areas such as consumer trust, overly-complicated tariffs and unfair pricing. Gallacher said: “It is ironic the [Scottish Power] announcement comes exactly when the regulator is deciding whether energy firms are serious about treating consumers properly and if energy prices are fair. Ofgem has put the big six in the dock, saying suppliers have been quicker to raise prices than to cut them and are bamboozling consumers with complex tariffs. Scottish Power itself is under investigation by the regulator for unfair pricing and misselling. “Suppliers say they have no choice when costs go up, but no one else really knows if energy prices are fair. When this affects the cost of keeping warm and well, it is not an acceptable state of affairs. Energy suppliers are in a deep, deep hole on consumer trust. Now would be a good time for Scottish Power and the others to stop digging deeper and show that they understand what their customers want – fair pricing, fair selling and fair treatment.” Consumer group Which? argues that all energy tariffs should be structured in the same way so that customers can easily compare different deals. Executive director Richard Lloyd said: “This is yet another example of the ‘big six’ blaming the wholesale energy market for increases to domestic customers’ bills, but energy companies have a lot of work to do to convince consumers that energy prices are fair. “Greater transparency about exactly what is driving retail price hikes might help persuade consumers that energy companies are playing fair.” A Scottish Power spokesman said 700,000 households will be protected from the latest price rises because they are on capped or fixed tariffs. A spokesman for Moneysupermarket.com said: “This is a huge increase. Now really is the time to get on to the best-priced energy tariff for your usage level and area you live. “The cheapest online energy tariff is currently Online Saver 10 offered by EDF Energy with average annual bills of £940 but, in the face of rising prices, opting for the market-leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009, is the best way to safeguard against further price increases from the energy giants.” Energy bills Household bills Consumer affairs Family finances Utilities Mark King guardian.co.uk

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Scottish Power raises gas bills by 19%

Utility provider implements ‘shocking’ 19% rise in gas prices and 10% rise in electricity prices, as consumers are urged to switch and fix Scottish Power is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, blaming the increases on a rise in wholesale energy costs and volatility in global energy markets. The rise, which will affect 2.4m households and add £175 a year – or 48p a day – to the average dual fuel customer’s bill, was described as a “body blow for consumers” by Consumer Focus . Scottish Power, which last increased prices in November 2010 – raising gas bills by 2% and electricity by 8.9% – said it will notify customers from 11 June, giving them at least 30 days’ notice before the price change is due to take effect. Raymond Jack, Scottish Power’s UK retail director, said: “Wholesale prices for gas and electricity have increased significantly since the end of last year, and continuing unrest in global energy markets means future prices are volatile. We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers. “The rising burden of non-energy costs faced by Britain’s energy suppliers – including the cost of meeting government environmental and social programmes and the cost of distributing electricity on the national grid – has also placed further upward pressure on energy bills.” But the energy provider was blasted by consumer groups who believe its move could prompt a wave of further price rises from the other “big five” energy providers just months after last winter’s price rises. Audrey Gallacher, head of energy at Consumer Focus, said: “This huge increase will be a body blow for consumers, and we fear other firms will follow Scottish Power’s lead. Companies have been softening customers up for price rises for months, but customers will shocked at the scale of this rise. “We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.” Last winter the big six energy suppliers all announced price rises, with E.ON adding 9% to electricity prices and 3% to gas prices, while British Gas raised both its gas and electricity prices by 7%. Scottish and Southern Energy increased gas prices by 9.4% and npower added 5.1% to gas and electricity prices. EDF raised electricity bills by 7.5% and gas by 6.5%. Householders were warned by British Gas’s parent company Centrica in May to brace themselves for higher gas and electricity bills this winter, and to consider switching to a fixed-price tariff if they want to avoid the pain come December. Centrica suggested in a statement to the City that domestic gas and electricity prices are now significantly lagging behind wholesale prices, which it said have risen by a quarter compared with last year. ‘Under investigation’ Energy regulator Ofgem recently conducted its retail market review of the energy sector, identifying a number of problem areas such as consumer trust, overly-complicated tariffs and unfair pricing. Gallacher said: “It is ironic the [Scottish Power] announcement comes exactly when the regulator is deciding whether energy firms are serious about treating consumers properly and if energy prices are fair. Ofgem has put the big six in the dock, saying suppliers have been quicker to raise prices than to cut them and are bamboozling consumers with complex tariffs. Scottish Power itself is under investigation by the regulator for unfair pricing and misselling. “Suppliers say they have no choice when costs go up, but no one else really knows if energy prices are fair. When this affects the cost of keeping warm and well, it is not an acceptable state of affairs. Energy suppliers are in a deep, deep hole on consumer trust. Now would be a good time for Scottish Power and the others to stop digging deeper and show that they understand what their customers want – fair pricing, fair selling and fair treatment.” Consumer group Which? argues that all energy tariffs should be structured in the same way so that customers can easily compare different deals. Executive director Richard Lloyd said: “This is yet another example of the ‘big six’ blaming the wholesale energy market for increases to domestic customers’ bills, but energy companies have a lot of work to do to convince consumers that energy prices are fair. “Greater transparency about exactly what is driving retail price hikes might help persuade consumers that energy companies are playing fair.” A Scottish Power spokesman said 700,000 households will be protected from the latest price rises because they are on capped or fixed tariffs. A spokesman for Moneysupermarket.com said: “This is a huge increase. Now really is the time to get on to the best-priced energy tariff for your usage level and area you live. “The cheapest online energy tariff is currently Online Saver 10 offered by EDF Energy with average annual bills of £940 but, in the face of rising prices, opting for the market-leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009, is the best way to safeguard against further price increases from the energy giants.” Energy bills Household bills Consumer affairs Family finances Utilities Mark King guardian.co.uk

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