You are here: Home - Household Bills - News -

British Gas rates set to rise

Written by:

A trading statement by Centrica, owner of British Gas, shows clear signs of price hikes in the New Year.

The statement highlights a reduction in profit margins in the second half of 2007 due to increased wholesale prices. If this continues into 2008, the energy giant has hinted that a rise in household energy prices will be inevitable.

Tim Wolfenden, head of home services at, said: “This announcement is potentially bad news for 16 million British Gas customers, especially to those who switched back to the provider in 2007. There is an indication that shareholders, but not customers, are still its main priority.

“Although Centrica predicts a more difficult environment for all retail energy suppliers in 2008, it is still making a profit, but is saying that it isn’t enough. Wholesale prices are squeezing its profits and to ensure it maintains high target margins, it will have no choice but to pass on increased wholesale costs to customers. British Gas has already started paving the way for across the board prices rises by putting up the prices on its tracker plan.

uSwitch advises that for those customers who are worried or are particularly vulnerable to the impact of price rises, there are some good competitive fixed energy plans available, which may give the protection they need. It urges consumers to compare all plans and prices out there to make sure that they are on the one that really suits their needs.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Second income Britons

A fifth of Britons (20%) boost their income with money earned from a hobby or interest, according to National Savings...