12.5% electricity price increase blamed on rising costs but Centrica still made £381m operating profit from UK home energy customers in the first half of 2017
British Gas is increasing the price of electricity on its standard variable tariff by 12.5% from the 15th of September 2017, a move which will affect 3.1m customers. Ben Wilson, Energy Spokesperson for GoCompare comments:
“Wholesale energy costs have fallen but British Gas still try to justify an electricity price increase nearly five times above the level of inflation. In our view there’s no excuse for hitting customers with this level of increase and it’s an additional slap in the face to impose it just when temperatures will drop and demand will go up. What’s worse is that this will affect those already paying too much for their electricity; the 3.1m customers on British Gas’s standard variable tariff.
“In a recent in-depth study we calculated that UK households who stick with expensive tariffs and don’t switch to better deals are over £925m a year worse off. That’s a staggering figure but it’s easy to see how these sums add up. This increase from British Gas will add £76 a year to an average British Gas dual fuel customer’s bill. Multiply that by 3.1m customers facing the increase and that’s a tasty £235m boost to British Gas’s income at the expense of loyal bill payers.
“It’s time for customers on British Gas’s standard variable tariff to wave goodbye to rip-off price rises and enormous energy bills by switching to a more competitive energy tariff before the increase takes effect. Loyalty doesn’t pay, unless you’re the one sending out the bills.”
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