British Gas’ 9.2% or £131 gas and electricity price hike kicks in this Friday (23rd November)
Average household bill for a dual fuel British Gas customer will increase from £1,340 to £1,471 a year
British Gas has said that: “**Energy suppliers and politicians both have a role to play in helping to minimise the impact of higher costs on bills and improving transparency to restore trust in the industry” – the Government has yet to confirm what it intends to do about green and social levies on energy bills**
As forecasts warn of an impending arctic freeze, over eight in ten households (83%) will be rationing their energy use this winter to save on bills.
Price rise misery will hit almost 8 million British Gas customers this Friday (23rd November), says Uswitch.com, the independent price comparison and switching service. The country’s biggest energy supplier will increase its prices by 9.2% or £131 for gas and electricity, resulting in its average standard dual fuel bill soaring from £1,340 to £1,471 a year.
The increase follows a warning from the National Audit Office that energy and water bills will continue to soar for the next 17 years. British Gas is the second of the big six suppliers to implement a price hike this winter, following SSE last week (15th November).
Both suppliers have pointed to Government-imposed levies as being a driving factor behind the moves. Last week British Gas’ parent, Centrica, went further by saying that: “Energy suppliers and politicians both have a role to play in helping to minimise the impact of higher costs on bills and improving transparency to restore trust in the industry”. But while the Government is said to be planning to review these levies, no firm commitment has been made yet.
While the debate rumbles on, Britain is bracing itself for an artic freeze, due to hit this week according to forecasters. This will exacerbate the impact of higher prices and could lead to even more households going without heating in an attempt to keep a lid on costs.
Even before price rises were announced, over eight in ten households (83%) said that they would be rationing their energy use this winter to keep their bills down. Last winter, almost seven in ten households (69%) went without heating at some point to keep their energy costs down – over a third (35%) said that cutting back on their energy use was affecting their quality of life or health.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “With winter’s first big freeze about to bite, this latest round of price hikes will leave many households worried about the cost of heating their home. Warmth is a basic necessity, yet sky-high prices will leave many families cutting back or turning off their heating completely. This will have a knock-on effect on health and well-being – quality of life will suffer for the very many who will be going cold.
“I would urge the Government to let consumers know as soon as possible whether they can expect a reduction to their bills any time soon and to also make it crystal clear that this will be applied to all tariffs across the board. This will provide some much-needed clarity and enable consumers to continue to shop around with confidence.
“With the high cost of energy this winter it’s vital that consumers take their own steps to cut their costs immediately. Firstly they should stop paying over the odds and switch to the most competitive deal for their needs. Secondly, they should look to make their homes more energy efficient as this will allow them to reduce the amount of energy they use without having to compromise on staying warm. Anything the Government delivers over and above is just the icing on the cake.”
Average household energy bills:
Source: Uswitch.com
Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *This doesn’t factor in any potential reduction as a result of a future Government announcement regarding levies on energy bills.** E.ON hasn’t announced a price increase.
British Gas announcement: October 17th, 2013.
Based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas, on a British Gas standard Dual Fuel plan, paying quarterly by cash or cheque with bill sizes averaged across all regions.
Centrica’s Interim Management Statement: November 14th, 2013.
Arctic freeze: http://www.express.co.uk/news/uk/443672/Arctic-blast-to-last-a-month-Warning-as-freezing-winds-bring-snow-and-ice-chaos
Research was conducted with the Uswitch.com Consumer Opinion Panel in September 2013 amongst 1,250 adults with bill paying responsibility for their household energy. In response to: ‘Are you planning to cut back on the amount of energy you use this winter to make your bills cheaper?’ 51.3% said ‘I am already doing this’ and 31.2% said ‘Yes, I am planning to’. This adds up to 82.5%.
Research conducted with the Uswitch.com Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Have you gone without heating this winter to keep energy costs down?’ 31.2% said never, 50.6% said occasionally, 16.5% said regularly and 1.7% said always. This adds up to 68.8% who went without heating at some point.
Research conducted with the Uswitch.com Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 34.9% said ‘No – the cut backs I’m making are affecting my quality of life and/or health’.
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