08/07/11
British Gas will raise gas prices by 18 per cent and electricity by 16 per cent, it has been announced today. The price hike kicks in 18 August and will add around £190 to the average duel fuel household bill.
As Britain’s largest energy firm, the price rises will affect around 9 million households across the UK. British Gas is the second of the UK’s “big six” energy suppliers to raise prices.
Scottish Power led the way on 7 June when it announced a price rise of 19 per cent for gas and a 10 per cent for electricity, from 1 August.
Customer dismay
Industry experts predicted that other gas and electricity firms would soon follow suit. Lisa Greenfield, energy analyst at Confused.com said: “We’ve been waiting for British Gas’ inevitable announcement for weeks now, and today’s news means the dominoes have started to fall.
“The others are sure to topple soon. Struggling households will be dismayed by the news and with British Gas the largest supplier in the UK many will be unimpressed.
“We advise consumers to opt for a fixed tariff as they offer price security against future hikes.
“Paying by direct debit and managing your account online will also be cheaper. The best deals are sure to be pulled soon so we urge consumers to act quickly”.
“Steep rise” in wholesale gas blamed
British Gas has blamed a “steep rise” in the cost of wholesale gas for the price hikes.
The energy firm’s managing director, Phil Bentley, said: "We know there is never a good time to raise prices, but we are buying in a global energy market and have to pay the market rate.
"Rising wholesale costs is an issue facing all energy suppliers. Our advice to customers is to wait and see what happens in the energy retail market as a whole before making any decisions about switching supplier.
"In the mean time, they should get in touch with us and ask about the simple ways we're offering to help keep bills under control."
British Gas say customers can contact them for free on 0800 048 0202 or by visiting: www.britishgas.co.uk/threesimpleways.
