British Gas price rises – who owns the company and by how much will my fuel bills increase?
MILLIONS of British Gas customers are going be paying an average of £60 more a year on fuel from today - May 29, 2018.
The energy giant said it "reluctantly" announced the price increase of an average 5.5 per cent for a typical 'dual fuel' customer.
Who owns energy giant British Gas?
British Gas is the UK’s largest domestic energy supplier with millions of customers throughout the UK.
However, it is actually a subsidiary of Centrica, formed following the demerger of British Gas plc in 1997.
Centrica is a British-owned utility company with a headquarters based in Windsor, Berkshire.
Its main activity is the supply of electricity and gas to businesses and consumers in the UK, Ireland and the US.
British Gas is the oldest energy company in the UK. It was founded in 1812 as the Gas Light and Coke Company.
It changed its name to British Gas in 1973 following a restructure after the Gas Act of 1972.
In 2017, it was reported Centrica raked in a £1.4billion profit bonanza.
When will the dual fuel bill price increase?
The price rise comes in to effect today, May 29 2018, and affects more than 4m British Gas customers.
Centrica said a “typical” customer on its standard variable tariff would now pay an average £1,161 a year when the £60 increase comes in.
The energy firm scrapped its standard tariff on March 31 and if customers do not switch they will be shifted to a temporary tariff.
Centrica blamed the price hike on rising wholesale and Government policy costs
It's not the first energy firm to push up costs this year - in March, E.On announced around 2m customers will see bills rise by up to £50 a year.
British Gas has 7.8 million household customers in total.
It last raised prices in September, adding £76 to electricity bills.
What do the energy watchdogs say?
Critics blasted the move as a "slap in the face" for customers, who will face yet another rise in their gas and electricity bills
Energy regulator Ofgem described the increase as "unwelcome" and encouraged householders to shop around.
And Energy Minister Claire Perry said she was "disappointed" by the hike which she said was "unjustified."
"Switching suppliers will always help consumers get the best deal, saving £308 by switching from a default tariff offered by the Big Six," she said.
MoneySuperMarket states there are currently 30 tariffs available that are at least £250 cheaper.
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