Some 7.8 million British Gas customers will see their bills jump by
£125 from 23 November after the energy giant announced average prices
hikes three and a half times the rate of inflation.
The move will leave average annual bills at a record high - £1,465 a year - forcing many more hard-up households into fuel poverty. Gas prices will climb 8.4 per cent while electricity will soar by 10.4 per cent.
However across the country the rises vary tremendously with those living in the Scottish Hydro Electric area being worst hit with a price increase of 11.2 per cent. In comparison, those in the old SWEB region will be hit by an increase of just 6.8 per cent.
British Gas's increase tops the 8.2 per cent hike announced by SSE earlier this month. Of the big six, EDF, npower, E.ON and Scottish Power are yet to announce increases to the cost of their gas and electricity.
Martin Lewis, of MoneySavingExpert.com, said: “Now the big energy beast British Gas has put its prices up by even more than SSE, confirming that this price hike round is big, and is nasty. It also means that two of the big six sheep have bleated, the rest are likely to follow within the next six weeks, leaving millions more homes already under the cosh having to choose between heating and eating."
Tom Lyon, energy expert at uSwitch.com, said: "Today’s price hike will be seen by many as a broken promise after the supplier suggested in May that it would use the extra profits it made last winter to hold off from any price hikes. British Gas customers have had the rug pulled from under their feet and I suspect that many will be feeling let down and betrayed. Adding a further £125 to an already sky-high energy bill will leave many buckling, but the real damage will be to trust."
Caroline Flint MP, Labour's Shadow Energy and Climate Change Secretary, said: “These latest price rises show clearer than ever why Labour’s price freeze is needed. People are sick and tired of being left out of pocket because of David Cameron’s failure to stand up to the energy companies."
Business groups launched a bitter attack on the price rise, branding it a “disgrace”.
The Federation of Small Businesses said the move meant it was ever more important to reform the energy market and create real transparency so companies could make informed choices when selecting their energy provider.
John Allan, national chairman of the FSB, said: “Today’s British Gas increase at three times the rate of inflation is a disgrace. It is going to hit many households hard at a time when they simply cannot afford it. More than 40 per cent of small businesses are with British Gas and energy price rises are going to make the cost of doing business even higher.”
He pointed out that the market for business customers is even less transparent than that for households as the prices are not put into the public domain.
The move will leave average annual bills at a record high - £1,465 a year - forcing many more hard-up households into fuel poverty. Gas prices will climb 8.4 per cent while electricity will soar by 10.4 per cent.
However across the country the rises vary tremendously with those living in the Scottish Hydro Electric area being worst hit with a price increase of 11.2 per cent. In comparison, those in the old SWEB region will be hit by an increase of just 6.8 per cent.
Speaking to BBC Sussex radio Mr Cameron said: "I think it is a very disappointing announcement by British Gas.
"I
think there are things we can do. We are intervening because we are
legislating to say these companies have to put their customers on to
the lowest tariff.
"I think a lot of customers find it utterly baffling how many tariffs they have.
"But there is something everyone can do, which is look to switch their electricity or gas bill from one supplier to another.
"On average, this can help people save sometimes as much as £200 on their bill.
"So
I would encourage customers who are not happy with the service they're
getting, are not happy with the prices, to go to the switching sites
online and see whether they can get a better deal."
British Gas
today denied accusations of profiteering and instead blamed a range of
external factors for the increase. Ian Peters, Managing Director of
British Gas Residential Energy, said: "What’s pushing up energy prices
at the moment are costs that are not all directly under our control,
such as the global price of energy, charges that we have to pay for
using the national grid that delivers energy to the home, and the cost
of the Government’s social and environmental programmes."British Gas's increase tops the 8.2 per cent hike announced by SSE earlier this month. Of the big six, EDF, npower, E.ON and Scottish Power are yet to announce increases to the cost of their gas and electricity.
Martin Lewis, of MoneySavingExpert.com, said: “Now the big energy beast British Gas has put its prices up by even more than SSE, confirming that this price hike round is big, and is nasty. It also means that two of the big six sheep have bleated, the rest are likely to follow within the next six weeks, leaving millions more homes already under the cosh having to choose between heating and eating."
Tom Lyon, energy expert at uSwitch.com, said: "Today’s price hike will be seen by many as a broken promise after the supplier suggested in May that it would use the extra profits it made last winter to hold off from any price hikes. British Gas customers have had the rug pulled from under their feet and I suspect that many will be feeling let down and betrayed. Adding a further £125 to an already sky-high energy bill will leave many buckling, but the real damage will be to trust."
Caroline Flint MP, Labour's Shadow Energy and Climate Change Secretary, said: “These latest price rises show clearer than ever why Labour’s price freeze is needed. People are sick and tired of being left out of pocket because of David Cameron’s failure to stand up to the energy companies."
Business groups launched a bitter attack on the price rise, branding it a “disgrace”.
The Federation of Small Businesses said the move meant it was ever more important to reform the energy market and create real transparency so companies could make informed choices when selecting their energy provider.
John Allan, national chairman of the FSB, said: “Today’s British Gas increase at three times the rate of inflation is a disgrace. It is going to hit many households hard at a time when they simply cannot afford it. More than 40 per cent of small businesses are with British Gas and energy price rises are going to make the cost of doing business even higher.”
He pointed out that the market for business customers is even less transparent than that for households as the prices are not put into the public domain.
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