British Gas electricity prices set to SOAR by 12.5% – how much will YOUR bill go up?

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British Gas electricity prices set to SOAR by 12.5% – how much will YOUR bill go up?

British Gas electricity prices set to SOAR by 12.5% – how much will YOUR bill go up?
ENERGY giant British Gas has confirmed it is set to increase electricity prices next month in a move that will affect around 3.1 million customers.
By Will Kirby
PUBLISHED: 07:10, Tue, Aug 1, 2017 | UPDATED: 09:08, Tue, Aug 1, 2017

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Electricity bills are set to increase by 12.5 per cent with the higher prices set to come in on September 15, just as temperatures begin to drop.

The Big Six energy giant confirmed the price rise after a blunder on Monday saw the group mistakenly publish an incomplete statement about increasing electricity tariffs on its website.

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british gas electrcity pricesGETTY•PA
British Gas electricity price increases will affect millions of Britons

The average annual dual-fuel bill for a typical household on a standard tariff will rise by £۷۶ to £۱,۱۲۰, a 7.3 per cent increase.

However, gas prices will be held at their current level.

Centrica-owned British Gas said the price rise is its first since November 2013 and the group pledged to help protect more than 200,000 vulnerable customers from the increase.

Centrica Consumer chief executive Mark Hodges said: “We held off increasing prices for many months longer than most suppliers in order to protect our customers from rising costs, so it is a difficult decision to have to announce an increase in electricity prices.

GETTY
British Gas is the biggest energy supplier in the country

“This rise reflects an underlying increase in policy and transmission costs.”

Centrica chief executive Iain Conn told the BBC’s Today programme that they were “selling electricity at a loss and that is not sustainable”.

He added: “Our electricity prices have been the same since 2014. Since then we have seen significant pressures on cost in two areas – the transmission and distribution of electricity to the home and secondly government policy costs which are recouped through the bill.”

Before the General Election, Theresa May announced plans for a cap on standard variable tariffs (SVT) which could have saved millions of people around £۱۰۰ a year.

However, the news from British Gas suggested UK customers are set to see an increase in bills, rather than a fall.

GETTY
The news comes as temperatures are set to fall & is likely to affect millions of homes

Social media users have reacted angrily to news of the price hike.

One user wrote: “This is pure and simple GREED on British Gas part!!! I urge all of British Gas customers to switch to another energy company!!!”

Another added: “Increase of 12.5 per cent in British Gas electricity prices not justified. According to Ofgem suppliers costs gone down 9 per cent on dual fuel bill.”

Centrica’s half-year results show that earnings from its consumer business have plunged by more than a quarter after it lost 377,000 UK customer accounts in the first half.

Underlying operating profits from its UK home energy supply arm fell 26 per cent to £۳۸۱million as the group said it was also hit by warmer than normal temperatures and the pre-payment tariff cap.

Centrica’s overall underlying operating profits were 4 per cent lower at £۸۱۶million for the six months to June 30.

The group said it held off from the price rise a for “up to six months longer than some of our competitors”.

Millions of households are already missing out on getting the cheapest tariffs by not switching energy providers.

Despite the fact that the number of people switching rose by 30 per cent last year, around two-thirds of bill-payers are still not on the best tariff.

Alex Neill, Which? Managing Director of Home Products and Services, urged customers to consider switching to a fixed-price deal.

She said: “Hard-pressed consumers waiting to see how the Government will tackle costly standard variable tariffs will be disappointed to see prices rising. Customers concerned about their tariff should switch to a fixed price deal now and the Government should rapidly set out how it intends to make this market work better for consumers.”

A spokeswoman for the Department for Business, Energy and Industrial Strategy said: “Energy firms should treat all their customers fairly and we’re concerned this price rise will hit many people already on poor-value tariffs.

“In response to a letter from the Business and Energy Secretary asking what action the regulator intended to take to safeguard customers on the poorest value tariffs and the future of the standard variable tariff, Ofgem has committed to taking prompt action, in consultation with consumer experts, to develop proposals including a safeguard tariff.

“We want to see rapid progress on this commitment.”

GETTY
Martin Lewis has offered advice to those facing increased bills

Money saving expert Martin Lewis, who regularly offers advice about how to reduce the cost of bills, said: “This is British Gas’ catch-up price hike. It was the only one of the big 6 firms not to raise prices at the start of the year, and now, as predicted, it’ll do it from September. And that means, if, (as is possible) we see another batch of rises this coming winter, its customers will feel like they been price-slapped twice in rapid succession.

“While this freeze has given people a little respite from price moves over the key high use winter period – the problem is for many the false sense of security that it wouldn’t move prices meant they did nothing, when they could’ve cut their rate, and locked that in for longer, by actively picking a far cheaper one year fixed energy tariff.

“So let this be a clarion call for British Gas customers (and all those on big 6 standard tariffs).

“Do not sit on your backside and just take this. For someone with typical use, on British Gas’ standard tariff you’re going to be paying £۱,۱۲۰ a year from September.

“The cheapest tariffs on the market are £۸۴۰ for the same usage. And switching is usually no big deal – there’s no break in service, no engineers coming to call – it’s the same gas, same electricity, same safety – only the price and who provides customer service actually changes.

“The easy way to find your cheapest (it depends on your use and where you live) and customer service ratings is via my www.cheapenergyclub.com which unlike some doesn’t default to showing tariffs where there’s a commercial link.”
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۴۷ Comments

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۲ hours ago
mandyjeancole
And we are going to cope with electric cars ?? You do the sums ?? mjc

ReplyShare

۰
۳ hours ago
livefrom
Every time the pound drops Nigel farage gets a big pay rise because as a euro MP he gets paid in Euros, well in Nigel you stiched the stupid Brexit voters.

ReplyShare

۰
۳ hours ago
۶۰plus
Hope he can live with himself when a lot of elderly people are found dead this winter from the cold because they can’t afford to heat their homes.

ReplyShare

۰
۴ hours ago
DarrenA
Electricity will keep on increasing in price as we lack the power stations and then the government tell us we all need to be driving electric cars as well which will push demand higher and higher and electric companies want to be able to disable electrical devices on our homes to save power, we will be charging electric cars but the electric companies also want to be able to pull power back from the cars while they are on charge so we could be pay two or three times to charges cars if they pull the power back. Smart meters could be used to regulate power consumption and systems like hive heating control could limit or disable heating, we are all falling into the big brother trap of full state control of our lives.

ReplyShare

۰
۴ hours ago
livefrom
This is just the start, pound as dropped by 14% to the euro,prices will rise, wages will stay down, welcome to BREXIT BRITAIN.

ReplyShare1 reply


۳ hours ago
markmark
indeed and as Brexiteres are the one ‘enjoying ‘ the lowest income its them who are going to suffer first…and they price food …. oh well they can go and see Boris and Nigel to help them to finance their living. By the way Nigel doesnt care as he s got a French girlfriend so they can have cheaper food.

ReplyShare


۴ hours ago
TomSnood
Make them ditch the standing charge

ReplyShare

۰
۴ hours ago
Oliver Cromwell

Avarice, the spur of industry.

ReplyShare

۰
۴ hours ago
right-writes
The big question is….

Can we afford our politicians?

ReplyShare

۰
۴ hours ago
JohnMac5
Go nuclear. It’s the only way to ensure we have lots of energy at cheap prices. These fancy windmills and solar panels just don’t cut it. They don’t work 50% of the time and just makes energy ruinously expensive.

The weird beards and greenpeace made people think they are going to fail in a mushroom cloud explosion, which is impossible. It cannot happen. Nuclear is safe. Far safer than flying for example.

ReplyShare3 replies


۴ hours ago
Ermintrude
Staggeringly the wind turbines have to be switched off when the wind strength exceeds certain limits and I am not talking about hurricanes.

ReplyShare


۴ hours ago
Quelchy
“Nuclear is safe…” – especially Thorium. Google it…

ReplyShare

۰
۳ hours ago
markmark
nice idea but as we dont have a nuclear industry a, we need to rely on the French . furthermore the brexiter moron like you didnt take in consideration the import of Uranium which is regulated by European legislation and as we shall not come under the EU juridiction the import of nuclear raw products is going to be difficult…as far as the treatment of nuclear by products…well thats another story.

ReplyShare

۰
۴ hours ago
lllkkk
it’s the ft plain and simple, May you need to stop them, threat en them, they have no fear of anyone, we need rescuing from them.

ReplyShare


۵ hours ago
kangarilla
Energy prices will continue to rise due to us having to subsidise alternative forms of energy i.e wind farms etc.These forms of energy are are costly and not an efficient way to produce energy compared with nuclear power.

ReplyShare


۵ hours ago
JanetWhite
“This rise reflects an underlying increase in policy and transmission costs.”

Bull, the rise reflectes the bosses wanting more pay and to pass more profit to shareholders ! These companies are nothing but rip off merchants and always have been and it is time they were nationalised. We will soon all be sitting in the dark!

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۰
۵ hours ago
GloriaFromVictoria
In the early years of privatisation the companies did seem to compete for business with lower prices, however, the our current situation is all about what rivals are charging, one puts the price up and all the others can’t wait to follow. Same applies with telephone / broadband providers……

ReplyShare1 reply


۴ hours ago
JohnMac5
I heard the big six are all secretly owned by centric a. It wouldn’t surprise me.

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۰
۵ hours ago
majo
Public Service companies should be re nationalised.

ReplyShare1 reply


۴ hours ago
Louisbernard
how is that supposed to help?

ReplyShare


۵ hours ago
noginthenog
The rich (shareholders) get richer , the poor ( customers) get poorer , that’s what this country’s all about.

ReplyShare


۵ hours ago
Mazer
I am with the SSE for electric. Their price went up in April by 12% for standard energy (14.86p per kWh to 6.75p per kWh) – so it’s an all-round supplier wide rip-off.

ReplyShare1 reply


۵ hours ago
Mazer
..should read 16.75p, not 6.75p..

ReplyShare

۰
۵ hours ago
RomulusX
no matter, the magic sovereignty blanket will keep the Brits warm this winter.

ReplyShare1 reply


۵ hours ago
Jackoby
Oh dear …very bitter!

ReplyShare


۵ hours ago
Just.Do.It
Rip off Britain.

ReplyShare


۵ hours ago
noginthenog
Thatchers great idea , worked out well for the customers hasn’t it.

ReplyShare


۵ hours ago
K Dave
Why was my previous comment subject to moderation, nothing offensive was said only the truth!

ReplyShare3 replies


۵ hours ago
John Longstride
Mine too. We live in a country that believes in free speech ?

ReplyShare1 reply


۴ hours ago
Oliver Cromwell
Only when it suits them.

ReplyShare

۰
۴ hours ago
JohnMac5
I figured out a few weeks ago I was being moderated by a completely innocent word that they themselves had included in their headline!

ReplyShare


۵ hours ago
steveharley
Change suppliers.I suppose Brexit is to blame.

ReplyShare2 replies


۵ hours ago
MichaelMouse1
Probably, it is certainly the root of recent inflation.

ReplyShare


۵ hours ago
Jackoby
Rubbish. Its just greed.

ReplyShare


۵ hours ago
Angry Button
And they want you to use electric to power your car.

ReplyShare3 replies


۵ hours ago
FatFreddysCat
I think of the batterys that have to be made then disposed of let alone the electric that has to be generated for you to charge them. Green diesel engines in some ag machinery,use twice the diesel to obtain a low emission reading…they dont tell you that tho…

As per we are tucked up for a kipper.

ReplyShare


۵ hours ago
Hill-billy
I’m more in favour of having a stationary bike with a little generator so I can pedal like mad and keep the lights on at home, it would also save trips to the gym in an electric car…..

ReplyShare1 reply


۴ hours ago
Trevor Ammanford
We have lots of illegal immigrants, put them on a treadmill hooked up to a generator and let them work for their food and free money.

ReplyShare


۵ hours ago
steveharley
That means Mrs May has lied. No surprise there then!

ReplyShare


۵ hours ago
incendiary
Consumers are there to be abused.

ReplyShare


۵ hours ago
Robin123
The price of Oil as dropped but not the Ripp-Off Energy prices. Corbyn should say he will nationalise them and he will get my vote because the Tories will do nothing about these Ripp-Offs. Nothing should go up more than the rate of inflation !

ReplyShare3 replies


۵ hours ago
D J K
Same Corbyn who said he would scrap and write off students loans. …..

ReplyShare


۵ hours ago
FatFreddysCat
It would cost the tax payer a fortune to renationalise the utilities,its not practical ,its another Corybin vote catcher.
I do think tho that Maggie was bang out of order to sell the utilities.
My oil goes up and down like petrol and I can just ring up whoever has the cheapest Kerosine and buy from thrm,no contract..

ReplyShare


۵ hours ago
MichaelMouse1
Oil prices may have dropped, but so has the value of the £, You now need more Pounds to but the same quantity of oil.

ReplyShare


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