Bleak winter for Brits as British Gas hikes energy prices
British Gas has announced that it is putting its prices up by 7% or £53 for gas and 7% or £29 for electricity from 10th December. The increase will hit its standard tariffs, affecting 8 million customers. It will add an extra £82 on to the average annual British Gas standard dual fuel bill, which will increase from £1,157 to £1,239 as a result.
The move is a bitter blow to consumers, who now face a bleak winter with Britain's biggest two energy suppliers now having announced a December price hike. Britain's second largest energy supplier, SSE, said it was hiking gas prices by 9.4% or £67 from 1st December. With British Gas now following suit, a full-scale increase in energy prices could be on the cards, although EDF Energy has already reassured its customers by announcing a winter price freeze on standard tariffs until March 2011. Other suppliers are yet to signal their intentions.
The last year British consumers saw a general hike in energy prices was 2008, a painful year when household energy prices rocketed by an eye watering 42% or £381, taking the average household energy bill from £912 a year to a wallet busting £1,293. Price cuts in 2009 and 2010 averaged out at just 8% or £99 in total, leaving the average household energy bill still £283 or 31% higher than in January 2008. Now, with today's news, these reductions are in danger of being wiped back out again.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "The spectre of inflation-busting energy price hikes is back with a bang. After a two year lull household energy prices are about to resume their steady climb upwards again. Unfortunately for consumers, the 8% or £99 reduction seen over the last two years failed miserably to reverse the impact of the 42% or £381 increase seen in 2008. And now, whatever small benefit was seen is about to be wiped back out again. This will be cold comfort indeed to British consumers who are now facing an extremely bleak winter.
"There is no room for complacency and I would urge consumers to act now. There are two key steps to keeping a lid on your energy bills - use less energy by making your home more energy efficient and move to a competitive energy plan so that you pay less for the energy you do use. The difference between the cheapest energy plan in the market and the most expensive standard plan is £422 - this is a substantial saving and could make a real difference for those who are worried or struggling with bills.
"For those who would prefer to be protected from price hikes, now is the time to start looking at suppliers' fixed price energy plans. These usually carry a premium for the peace of mind they offer but, interestingly, once British Gas and SSE's new prices kick-in it would now actually be cheaper for many standard customers currently paying by cash or cheque to move to a fixed price plan."