As predicted, British Gas will be putting up its energy bills in August – with Gas increasing by 18% and electricity going up a higher than expected 16%.
If you’re an average British Gas duel fuel customer, your energy bills are about to go up £190 a year.
That’s the effect of British Gas’s long expected price hikes, which will see gas bills increase 18% and electricity go up by 16% from 18 August.
Announcing the price rises, British Gas MD pointed the finger of blame at rising wholesale costs. “We are buying in a global energy market and have to pay the market rates,” he said.
The price increases are likely to infuriate British Gas customers, who took a hit with the 7% increase in charges levied last December.
Householders face increasing energy costs from more than one supplier – Scottish Power announced big price rises in June, and analysts predict other ‘Big Six’ energy companies will follow suit.
If there’s one crumb of comfort, however, it’s in the Energy Secretary Chris Huhne’s move to introduce new competition into the energy market – hopefully helping to reduce prices in the future.
Moneyhighstreet comments: “These increases have been expected for some weeks, and the electricity charge rise of 16% is much higher than the predicted 9%.
“Whichever way you look at it, costs like these are going to hit households hard. If yours is one of them, now could be the time to shop around for better energy deals – start your search at one of the major price comparison sites.
“But be careful when switching. With other energy companies predicted to increase costs in the near future, a fixed rate tariff may be the best insurance against higher bills”