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High energy bills? 'It's down to the government'

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Almost half the population thinks the government is to blame for the rise in energy costs, a Saga survey has revealed

Research* by Saga Home Insurance showed that the British public believes increases in fuel duty and VAT have led to soaring energy bills. Energy companies are also held to account, with more than two fifths of people polled citing them as directly responsible for price increases.

In the light of price hikes by British Gas and EDF, and further increases by Eon and Scottish and Southern Energy, consumers are facing a difficult time with household bills.

While energy companies blame rising wholesale prices on dwindling supplies, the British public blames the government, energy companies and excessive global consumption ahead of declining supplies (35%) and the demands of emerging markets (29%).

Other factors such as the conflict in the Middle East (32%) and the war in Iraq (25%) were also mentioned. A fifth of people polled also directly blamed the American government for increases in domestic fuel bills.

Interestingly, 18 to 34 year olds saw themselves and society as primarily responsible for these rises, saying the increases were due to excessive global energy consumption (42%) while all other age groups blamed government first.

The older generation is also more prone to point the finger at the Organization of the Petroleum Exporting Countries (OPEC), with 45% of the over 50s blaming the institution for price rises, compared to 31% of under 50s. This is probably because the over 50s are old enough to remember OPEC's involvement in the global oil crises of the 1970s.

Among the over 50s age group, one in five thought some of the responsibility lay with Britain's ageing nuclear power stations and infrastructure. Only 12% of the under 50s agreed.

London is the country's most ecologically-aware region. Almost half of Londoners surveyed thought excessive consumption was the trigger for the hikes, while all other regions followed the national trend and criticised government. London was the region most supportive of the current government, with just over a quarter blaming Westminster for the rises. More than two fifths of northerners, however, blamed the government.

To ease the pain, Saga Home Insurance is offering the chance to win free home energy for a year. Anyone who obtains an online quote for Saga Home Insurance by visiting www.saga.co.uk/house during August will be entered into a weekly prize draw to win the cash equivalent of a year's worth of energy.

Saga group chief executive Andrew Goodsell commented: "Whatever the reason for rising energy prices, consumers face an expensive winter. With the launch of our free energy competition, Saga aims to make it easier for some of our lucky customers."

Facts and figures: - Who is responsible for rising energy bills?

1. Successive UK governments (46%)

2. UK energy companies (44%)

3. Excessive global consumption of energy (40%)

4. The UK Labour government (38%)

5. Petrol-exporting countries (37%)

*Analysis carried out by Opinium Research on an online poll of 2,209 British adults between July 17-21 2008.

Your chance to win free energy for a year - how to enter:

1. One entry into the prize draw will be given for every Saga Home Insurance quote taken out online before the weekly closing date. The draw periods are: August 1-10, August 11–17, August 18–24 and August 25–31, 2008.

2. The limit is £3,000 and includes coal, gas, electricity and oil.

3. A second entry into the prize draw will be given if the customer converts their quote into a policy during the same week, but before the weekly closing date.

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The opinions expressed are those of the author and are not held by Saga unless specifically stated.
The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.