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3 million British Gas customers face 12.5% electricity bill hike

  • The UK’s biggest energy supplier, British Gas, is to hike electricity prices by 12.5% or £76 from 15 September, blaming rising policy and network costs

  • A typical dual fuel customer will see their bills rise from £1044 to £1120 a year – the equivalent of £235m across the country

  • The rise follows an extended price freeze

  • Customers can save up to £618 by switching to a competitive fixed deal.

Following an extended price freeze, British Gas has today announced that it is hiking the cost of its standard variable tariff for electricity by 12.5% or £76 a year for 3.1 million customers.

The increase, which takes effect from 15 September will add an annual total of £235.6 million to its customers’ energy bills. While it remains the cheapest big six standard tariff it is still £286 more expensive than the cheapest deal available today. British Gas has also announced that it will give a one-off credit £76 to the accounts of more than 200,000 vulnerable customers who receive the Warm Home Discount.

Commenting on the news, Claire Osborne, energy expert at Uswitch.com, says: “With these hikes set to kick in just before the winter, this is a body blow for consumers. At a time when living costs are rising faster than wages, this hike could push many families into the red. Customers should not be lulled into a false sense of security. The British Gas standard tariff remains the cheapest among the big six but it is still £286 more expensive that the cheapest deal on the market today.

“It’s time to 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.”

Table 1: Major energy suppliers’ price rises in 2017

SupplierPrevious SVT priceNew SVT priceDifferenceComes into effect from
British Gas£1,044£1,120£767.3%15 September
EDF Energy£1,069£1,160£918.5%11 February and 21 June
npower£1,077£1,187£1099.8%16 March
ScottishPower£1,081£1,167£867.8%31 March
£1,057£1,144£878.8%26 April
SSE£1,056£1,129£736.9%28 April

Source: Uswitch.com. Correct as of 1 August, 2017

Based on all bills paying by Direct Debit using medium dual fuel consumption as defined by Ofgem.

FOR MORE INFORMATION

Ailene Barr

Phone: 020 3872 5610

Email: ailene.barr@uswitch.com

Twitter: @uswitchPR

Notes to editors

  1. https://www.centrica.com/news/centrica-plc-british-gas-standard-tariff-increase-Aug17

  2. Between 1 June 2016 and 30 November 2016, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £618 or more.

  3. 3.1 million customers x £76 = £235.6 million

  4. Cheapest deal is IRESA Flex4 Standard Direct Debit at £834. British Gas new SVT is £1120.

  5. https://www.jrf.org.uk/report/minimum-income-standard-uk-2017 / ONS Consumer Prices Index: May 2017

  6. 65% of energy customers are on SVTs. Figure is based on 26 million customers and account data for the large and medium suppliers, stripping out double counting for dual fuel customers. 65% of 26 million customers is 16.9 million customers. .

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