British Gas announces 7% price rise - Gas and electricity - News - Moneyfacts

News

British Gas announces 7% price rise

British Gas announces 7% price rise

Category: Gas and electricity

Updated: 15/11/2010
First Published: 12/11/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

British Gas has announced that some of its customers will face a 7% rise in the cost of their gas and electricity from next month. The increase will affect around eight million British Gas customers that are on standard and variable tariffs.

British Gas said the decision was a result of a 25% rise in the wholesale cost of gas since the spring. Other network charges and environmental obligations are rising too, it is claimed.

The price rise will not be applied to the company's most vulnerable customers – those on its Essentials package – until 1 April 2011. In addition, some 1.6 million customers on fixed price deals will see no change in the way their bills are priced.

"We know that rising energy process comes at a difficult time for many in Britain," acknowledged Phil Bentley, managing director of British Gas.

It is the second price rise announced by one of the UK's main energy suppliers, after Scottish and Southern Energy (SSE) said it would be increasing its domestic gas tariffs.

Similarly to British Gas, SSE said that the changes were driven by the increased wholesale energy costs. By contrast, EDF Energy has pledged to keep its standard tariffs fixed over the winter.

Save on your Winter Heating Costs - Compare over 10,000 of the latest dual fuel, gas and electrcity tariffs in seconds. Switch online and cut your electric bill by up to 25%. Members are saving an average of almost £250 a year.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

British Gas freezes standard energy tariffs

British Gas has announced that it’s freezing its standard gas and electricity tariffs for the winter, ensuring that customers needn’t worry about price rises in the chilly months ahead. But is that enough to ensure households aren’t paying too much?

Living in a new home could cut fuel bills by half

Older homes will always be slightly more expensive to heat, with less insulation and sneaky draughts making these character-filled homes harder to heat efficiently. But did you know just how much more this could cost you? It could be double…

Standard energy tariffs are “fundamentally unfair”

We all know how expensive energy bills can be, particularly at this time of year when we’re all turning the thermostat up a notch. But what if you’re paying even more than you should be? If you’re on a standard tariff, that’s a very real possibility.
 
Close