5 December 2007
Households will now pay more for their energy bills following an announcement by British Gas that it is to raise prices on its Market Tracker energy plan.
Gas costs will increase to 13%, while electricity costs are to rise to 15% with immediate effect.
The tracker product is designed to track wholesale energy prices, aimed at a type of consumer who does not mind taking a chance on bills going up, as well as down, on a far more frequent basis.
This latest price increase has prompted speculation that all energy customers, not just those on the Tracker plan, may face price rises in future.
Tim Wolfenden, Head of Home Services at uSwitch said: "The move follows British Gas' first three monthly review of its tracker plan prices. However, while there is nothing sinister in the timing, the increase in prices could be seen as a sign of things to come. It supports market rumours that prices are going to be on the up again, which will be a concern for consumers.
"Those who have signed up may be disappointed that only a few months in and prices are already going up. But if market rumours turn into reality then many more consumers may be facing the same disappointment too," he warned.
The price increases coincide with Energywatch's latest report on energy suppliers, which claims that many are exploiting the poorest people in the UK by forcing them to use prepayment meters.
According to the consumer group's research, many people on low-incomes are paying an average of £195 extra each year, compared to the best available deals.