Franchising, retail, business
31/07/2017 - Find out why…British Gas are set to raise their electricity prices by 12.5 per cent from 15 September, owner Centrica has announced.
The company’s gas customers will not be affected as prices will remain unchanged but the electricity price increase will affect more than three million customers.
The average annual bill for a typical household on dual fuel on a standard tariff will increase £76 to £1,120, a rise of 7.3 per cent.
The company owned by energy giant Centrica said the price rise was its first for four years and that it would give a £76 credit to more than 200,000 vulnerable customers to protect them from the increase.
British Gas chief executive, Mark Hodges told Sky news that ‘wholesale prices during the last 12 months have not gone down’ and that ‘underlying cost pressures’ were the cause of the increase.
He said: “We haven’t taken this decision lightly. We realise that 3.1m people are affected. But we have in the end have had to respond, like many of our competitors to the underlying increases we have seen in electricity.
“Our costs have gone up over the past few years by around 16 per cent, so in the end, despite our own efforts to try and keep our costs under control, our efforts to improve our service, we have just had to make this difficult decision.”
He said that 5.3m customers would be unaffected by the rises and that the standard variable tariff will cost customers less than it did back in November 2013.
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