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British Gas Joins Price Hike Bonanza
(18-01-08) - It’s finally happened. British Gas(www.britishgas.co.uk) announced today that their customers face a 15% price hike on gas and electricity bills.
The move comes on the back of similar increases by EDF and npower(www.npower.com), and is sure to spark the energy suppliers who have yet to table a retail price increase into action.
Centrica, the owners of British Gas, have stated that ‘both gas and electricity rates will rise by 15% with immediate effect.
They added ‘2.4 million customers on fixed-term tariffs will not be subject to the increase, and we will delay the rise for 340,000 vulnerable and elderly customers until the spring.’
The managing director of British Gas, Phil Bentley, echoed the reason given by both npower and EDF to justify these rises:
‘As the UK’s biggest buyer of gas, we want lower gas prices. However, lower availability of supplies from both the UK and the Continent, coupled with higher global oil prices, have forced up wholesale prices.’
He continues:
‘We can’t absorb the burden of these higher energy prices and the costs of delivering a cleaner environment.’
Michael Phillips, Product Director at EnergyChoices, urges consumers to consider the options of online tariffs and direct debit payments:
‘Despite these increases, customers on the Click Energy 4 tariff are still paying the least for their gas and electricity. The incentives for managing your own online account keep stacking up. Extra discounts are also given for paying by direct debit. If you’re a British Gas customer on a standard tariff, by switching to the Click Energy 4 tariff you could absorb some of these rate increases.’
