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British Gas is to hike electricity prices by 12.5%

From 15th September, consumers on British Gas’ standard variable tariff will have their bills increased

All six of the largest UK energy suppliers have now raised prices in 2017. E.ON, ScottishPower, npower, EDF Energy and SSE have all had price rises come into effect this year, and now British Gas has announced it will be raising prices for standard plan customers too.

BG to raise electricity prices 12.5% for three million customers

BG is the latest supplier to announce their price hike of 12.5% for electricity, meaning an average rise of 7.5% for dual fuel, variable rate customers — effectively adding £235.6 million to its customers’ energy bills.

The increase is set to take effect from 15th September, and follows an extended price rise put in place by the supplier earlier this year.

British Gas have defended the decision:

“We’ve held off making an increase for as long as possible, and for many months after other suppliers significantly raised their prices.”

The supplier puts the increase in price down to rising costs — “among them Government policies to subsidise renewable energy, social levies, delivery to customers’ homes, and the nationwide smart metering programme.”

66% of us are sat on pricey SVTs

Standard variable tariffs (SVTs) act as a supplier’s default tariff, and are often the most expensive option — these are also the plans that are subject to price rises.

2017 price rises — new average annual cost of dual-fuel standard tariffs:

svt costs of big six suppliers

Fixed deals however, lock in the unit rates of your gas and electricity for the duration of the deal, often 12 months. Once this deal comes to an end, it’s likely that your supplier will roll you back onto their default tariff — that’s when it’s time to pick a new deal again.

Claire Osborne, energy expert at uswitch says:

“It’s time switch supplier and send a message that price rises like these just aren’t acceptable.

“Seven in ten households are overpaying for their energy on expensive standard tariffs, yet within ten minutes they could switch and save hundreds of pounds – as well as protect themselves against further hikes by fixing their tariff.”

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  • A Ridley

    It’s a load of rubbish that when you look around to change your supplier you get told that you will save eg £300 or more a year by switching to them but when you compare the new gas & electric and standing charges which some suppliers shy away from telling you, but when you do find out, the small difference in their prices make it impossible to save anything unless you cut down on your energy output.
    So if you are thinking of changing find out their gas and electric and also the standing charge and check it against what you are currently paying don’t just go by the savings that they say you will save, sometimes their charges work out dearer.

  • Tellemhowitis

    I personally have been aware for sometime now that switching energy providers is likened to playing hopscotch on floating blocks of ice,because like with ice the latest new deals just melt away below you.
    All that you have effectively done is move your paperwork or your virtual paperwork (on-line account) to another provider that will hike it up again when they see fit and then blame it on a multitude of influencing factors.
    The practice of penalising account holders for not setting up direct debits should be called a halt to and in particular the practice of increasing monthly payments because of a minor spike in the usage because of an unforeseen glitch with a boiler,this will be greeted with the complete rejigging of your annual consumption.
    Some years ago I had a faulty gas valve that caused a rise in consumption over a period of a few weeks,I was working away from home but returning each weekend and the central heating had been left on over the colder months to prevent the house becoming cold and the possibility of the pipes/heating system failing.
    The gas board were quick to adjust my DD upward despite the fact that I was £247+ in credit.

    The savings that they claim are based upon average figures and usually on the higher usage bills.
    Manipulating figures is what they are all about and creating headlines and then playing down the rises in costs whilst playing one supplier off against another to get more people into their net.

    • Jackie Caprari

      You are absolutely right! I am told to switch from BG which will save me around £300 a year but by looking at the chart above which gives how much gas companies are increasing their prices for dual tariffs, BG’s rise is 7.5% but the annual cost is lower than all the other companies! How does it serve me to switch suppliers?? Am I missing something here?

      • Michael Pacey

        Jackie you will only save big money by switching to one of the smaller suppliers who are not shown on the chart above.
        I am currently with Bulb Energy and they are way cheaper than the big six.

        • Jackie Caprari

          But I am a little unsure of Bulb Energy Michael because I’ve never heard of them. Who are they? Do they have prices fixed for a certain period? I’m not very good at deciding which company is more economical.

  • Tellemhowitis

    I am currently rather wary of switching to one of the smaller players in the game of energy on the cheap. There have been a few of the smaller providers that have gone to the wall or have been driven into it by the one or more of the ‘Big Six’.
    Unless I am wrong here after switching suppliers from one of the six thousands of consumers found themselves out of the fire by switching only to be back into it but with another when one of the six that came to the rescue of the stranded account holders after it was disclosed that they had ceased trading.
    That said. Question :— I am currently with British Gas for both Gas and Electricity,I do not wish to enter into DD’s – who would be my best low cost provider here in Lancashire ?