British Gas hikes prices

Published:

08 July 2011

Topic:

News,Gas & Electricity

British Gas, the country's largest energy supplier, has become the second firm to announce price hikes. It will increase gas prices by 18% and electricity prices by 16% on 18th  August. This will mean the company's  millions of customers will see their annual bills climb by an average of £190.

The British Gas announcement follows the news that Scottish Power is increasing its prices on 1 August. Now two of the Big Six energy firms have confirmed bills are to rise, it will only be a matter of time before the others, EDF Energy, E.ON, npower and Scottish & Southern Electricity, deal a similar blow to their customers.

Higher heating bills are the last thing people need at the moment, particularly as the price rises will take effect before the winter when our energy usage soars. A recent survey by moneysupermarket.com found that 20% of households are unable to make ends meet as higher food and fuel bills take their toll. A further 30% said it would take an increase of less than £100 a month in their outgoings for them to pushed over their financial precipice.

The fragility of people's financial situation has been further underlined with recent news from the high street. The company that owns Moben Kitchens and Dolphin Bathrooms has gone into administration, Habitat is closing most of its shops, Jane Norman has called in the administrators and other retailers including Mothercare and Thorntons have also announced store closures and said how tough trading conditions are because consumers aren't spending.

The decision of British Gas and Scottish Power to increase prices now has therefore been widely criticised. Despite the criticisms the other energy firms are likely to follow suit so consumers need to ensure they are on the best tariff possible and aren't paying more than they need for their gas and electricity.

Scott Byrom, moneysupermarket.com's energy expert said: "It's clear that now really is the time to get on to the best priced fixed energy tariff for your usage level and area you live. We've had two of the major players in the energy industry make announcements so, bearing in mind historical energy market price rises, it's highly likely the other energy providers will soon follow suit. In the face of rising prices, opting for the market leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009 * is the best way to safeguard against further price increases from the energy giants."

Use our energy calculator to find out what's the best tariff for you and switch now before your bills start to climb.

There are also other ways you can help bring your gas and electricity bills down as Melanie Wright explains in her article 'How to save energy and cut bills'.

Related Links

• Compare tariffs from UK energy suppliers