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British Gas and ScottishPower announce price rises

British Gas and ScottishPower announce price rises

Beat the energy price rises

Five big six suppliers have already raised their prices following the Ofgem price cap increase. Don’t get caught out - switch to a fixed deal today!

British Gas and ScottishPower have both announced a 10% price rise, set to come into effect on 1 April.

British Gas' price increase is expected to affect almost four million customers on the supplier's standard variable tariff.

The price of the tariff will increase to an average of £1,254 annually, a hike of £119. Prepayment customers also face a £107 (9%) price rise.

ScottishPower customers on a standard variable tariff face a £117 bill increase, also to an average of £1,254 per year. ScottishPower's prepayment tariff will increase by £106.

Price cap trap

British Gas and ScottishPower are the fourth and fifth of the big six energy suppliers to announce price rises since Ofgem revealed on 7 February that it would be increasing its price cap on energy tariffs.

E.ON, EDF Energy, and npower and now British Gas and ScottishPower have all increased rates on their standard variable tariffs to the maximum allowed by the new price cap level.

Ofgem's default tariff cap came into effect on 1 January 2019 and is a limit on the rate suppliers can charge for their standard variable tariffs.

On 7 February it was announced that the cap will increase to £1,254 from 1 April, which has set off a wave of price rises from energy suppliers to match the higher cap.

Ofgem has committed to reviewing the level of the energy price cap twice a year, each April and October.

Commenting on the latest price rise announcements, Richard Neudegg, Head of Regulation at uSwitch, said they "should surprise no one, but that doesn't mean their customers should fall for the price cap trap.

"Bill payers on standard tariffs cannot be 'protected' by a cap that will change every six months — these customers sit at the mercy of a spreadsheet."

Price rises of over £1 billion

When the large suppliers' price rises come into effect on 1 April, British households will face a collective bill of over £1 billion.

Commenting on these figures, Richard Nuedegg said: "Standard tariffs are not value for money, with or without a cap."

"There are nearly 200 energy tariffs which are currently cheaper than the new cap will cost. Consumers can grab savings of over £300 by switching now."

Beat the energy price rises

Five big six suppliers have already raised their prices following the Ofgem price cap increase. Don’t get caught out - switch to a fixed deal today!

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