KISS MY GAS!
British Gas hikes energy bills for MILLIONS of customers by £60 a year today – here’s how to avoid it
The UK's biggest energy firm said it needed to put up bills due to a rise in wholesale costs
FROM today, millions of British Gas customers face paying up to £60 more a year for their gas and electricity bills.
The UK's biggest energy firm said it needed to put up bills due to a rise in wholesale costs and Government taxes.
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The increase will affect 4.1million British Gas customers from today, although switching to a cheaper deal will help to avoid it.
British Gas scrapped its standard tariff on March 31 and if customers do not switch they will be transferred on to a temporary tariff.
It's not the first energy firm to push up costs this year, with bills set to increase for 960,000 Scottish Power customers from June 1.
It came on the same day that the National Grid, operator of the UK's gas pipeline network, issued a "gas deficit warning" as intense demand from households outstrips supply.
How to switch suppliers and save £300
SWITCHING suppliers is the best way you can cut your energy bills. But recent research from MoneySuperMarket found that households are throwing away up to £300 a year by not bothering. Here's what you need to do.
1. Shop around - If you're on an expensive Standard Variable Tariff (SVT) deal you are throwing away up to £300 a year. Use a comparison site like MoneySuperMarket.com or EnergyHelpline.com to see what best deals are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount usually for 12 months.
2. Switch - When you've found one, all you have to do is contact the new supplier.
It helps to have the following information to hand - which you can find on your bill - to give the new supplier:
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
For more advice read our guide on how to switch.
Following the move, the Governments slammed the decision and urged Brits to switch.
At the time, minister for energy and clean growth, Claire Perry, said: "We are disappointed by British Gas’s announcement of an unjustified price rise in its default tariff when customers are already paying more than they need to.
"This is why the government is introducing a new price cap by this winter to guarantee that consumers are protected from poor value tariffs and further bring down the £1.4billion a year consumers have been overpaying the Big Six.
"Switching suppliers will always help consumers get the best deal, saving £308 by switching from a default tariff offered by the Big Six."
Writing in the Sun in February PM Theresa May said the price cap on expensive Standard Variable Tariffs should be ready by December this year.
The cap will run until at least 2020 - but there are fears the cap will actually push up prices instead.
In a statement Mark Hodges, CEO of British Gas' parent company Centrica, said: "This increase is largely due to rising wholesale and policy costs which are beyond our control.
"These same pressures were cited by Ofgem when they increased the prepayment meter cap by just over £57 in April.
READ MORE ON ENERGY BILLS
"Eleven other energy suppliers have also had to increase the price of their standard tariff recently due to rising wholesale and policy costs including the smart meter roll-out and schemes to reduce carbon emissions.
"Government’s energy policies are important but they are also pushing up customers’ bills.
"We believe Government should level the playing field so that the customers of all suppliers pay a fair share of energy policy costs."
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