British Gas price hike strikes tomorrow

British Gas' second price hike in 9 months comes into effect this Thursday (18th August). The increase - 18% or £120 for gas and 16% or £69 for electricity - will see its average dual fuel bill hit £1,286 a year. In total, British Gas customers have seen their bills increase by £256 or 25% since December last year (2010).

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "As we head into autumn, the majority of British households will be facing the reality of substantially higher energy prices. This is going to put a significant strain on family finances and will create considerable concern over winter energy bills this year.

"Just one supplier - EDF Energy - is yet to announce a second price increase. Interestingly it was also the final supplier to move last time around and actually froze its prices until March this year, protecting its customers through last winter. With wholesale prices now falling there is a glimmer of hope that this will encourage EDF Energy to stay its hand again. This will not only benefit its customers, but will also put considerable competitive pressure on those rivals who have already hiked their prices.

"However, it's too soon to say whether the fall in wholesale prices is a blip or an ongoing trend so I would urge consumers to focus on reducing their winter bills now rather than hoping for good news any time soon. Moving to dual fuel, paying by direct debit and signing up to a competitive online plan will reduce the price you pay for your energy. Cutting down on the amount you use by becoming more energy efficient will reduce your bills even further. Those who are particularly worried about the impact of future price hikes on their household budget should still look at fixed price plans. Some of these offer good value and security until 2014 - you just have to be aware that if prices do go down again you may not benefit."