You are here: Home - Household Bills - News -

British Gas to put prices up from April

0
Written by: Emma Lunn
16/02/2021
British Gas is the first big energy supplier to announce a price hike following a rise in the energy price cap.

Customers on British Gas’ standard default tariff will see their average bill increase by £97 – from £1,041 to £1,138 a year. The move will affect 2.3million customers.

Ofgem announced at the beginning of February that the energy price cap will rise from £1,042 to £1,138 from 1 April. The increase is primarily driven by a global recovery in wholesale energy prices in recent months.

For customers paying by prepayment meter, the energy price cap will rise by £87 from £1,070 to £1,156.

The energy price cap is the maximum amount a customer with typical energy usage on a standard or default energy tariff can be charged each year. But the cap doesn’t set a limit for your total bill – what is capped is how much can be charged for a unit (kWh) of energy.

Tom Lyon, director of energy at energyhelpline.com, said: “News of this price rise – which amounts to an eye-watering £229m – couldn’t come at a worse time for British Gas customers, after almost a year coping with higher energy bills due to lockdown restrictions.

“Although Ofgem has given a green light for price rises on default tariffs from April, energy suppliers are not obliged to hike the bills for hard-pressed consumers. We call on British Gas’ rivals to do the right thing by their customers and hold off any increases, especially as hopes rise for the easing of restrictions from the vaccine roll out.”

About 2.1 million energy customers where in debt to their energy supplier in December, according to Citizens Advice.

Energyhelpline warns that the surge in debt is only set to get worse with the prospect of further price rises.

It is calling on the government to look at ways to help households with spiralling energy costs, for example by temporarily cutting VAT and reforming the Cold Weather Payment so it better helps the most vulnerable to keep warm.

Lyon said: “While the price cap affects some of the most expensive deals on the market, fixed deals are unaffected and switching to a competitive fixed tariff will lower bills and lock in prices for 12 months or more.

“However, rising wholesale costs have increased the prices of the most competitive tariffs on the market by 17% since last April, so consumers are strongly advised to switch and fix sooner rather than later.”

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.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
Monzo calls for mandatory gambling blocks on bank accounts

The challenger bank says the government should force banks to let customers block all gambling transactions.

Close