British Gas increases price of market tracker

British Gas has announced it is putting gas and electricity prices up on its Market Tracker energy plan by 14% with immediate effect.

The plan is designed to track wholesale energy prices on a quarterly basis. It is aimed at a specific type of consumer who does not mind taking a chance on bills going up, as well as down, on a far more frequent basis.

The move follows only weeks after Centrica - British Gas' parent company - warned of the pricing pressures all suppliers are coming under and gave a strong hint to consumers that it would have no other option but to increase household energy prices for the second time this year. This increase is seen as an indication of what consumers can expect.

Ann Robinson, Director of Consumer policy at uSwitch.com, comments: "The British Gas Market Tracker plan tracks wholesale energy prices so acts like an early warning system, alerting consumers to the pressures suppliers are under and the impact this could have on household energy prices.

"Today's Tracker price increase following so swiftly from Centrica's hint a few weeks ago, is a clear sign of things to come and consumers should now be fully prepared for across the board energy price rises. We are talking about all suppliers putting up their prices for a second, or even third, time this year. In the worst case scenario this could lead to the average household energy bill hitting £1,327 by the end of the year.

"Consumers cannot afford to ignore these signs - they need to take action now to stand any chance of limiting the impact of higher prices. Online energy plans remain a good option for those who want to pay a lower price now and are happy to take their chances on the market in the future. Those who are more vulnerable to price rises or are already on a stretched budget should consider a fixed or capped price plan to protect themselves. These plans carry a premium, but should still work out cheaper than the plan you are currently on if you've never switched before."