Big British gas price rises kick in
Millions of British Gas customers will find themselves paying substantially more from today.
The energy giant announced record price rises at the end of last month, with gas bills increasing 12.4% and electricity by 9.4%.
Critics attacked the scale of the increases and warned that vulnerable customers would be hit.
British Gas is one of a number of suppliers to hike their prices in recent weeks to compensate for higher wholesale energy costs.
Scottish Power was the latest company to confirm it was raising prices when it announced on Friday that gas bills would go up 11.8% and electricity by as much as 9% on October 4.
Rival supplier npower unveiled a similar rise for gas and electricity on September 8.
The large bill increases for British Gas’s 15 million customers comes into force today.
However, early signs suggests the move could have already led many customers to take their business elsewhere.
Energywatch, the gas and electricity watchdog, said its website recorded a 1,000% surge in enquiries about how to switch supplier the day after British Gas made its announcement.
Calls to staff from people wanting advice also rose 54%, it said.
“We expect the move to have put a big hole in British Gas’s share of the gas and electricity market,” said Adam Scorer, spokesman for energywatch.
British Gas lost 290,000 customers after it announced its last price rise, of almost 6%, in January.
Ofgem, the industry regulator, echoed advice from elsewhere for customers to shop around to ensure they got the best deal on their gas and electricity.
A British Gas spokesman said: “What we are hearing on the doorstep on the phone is that customers are waiting to see what to do.
“They know that other energy suppliers are increasing prices and are holding off deciding where they might move to, if at all.
“If you had left British Gas the day after our announcement and gone to npower, you would have walked into another price rise.”
It emerged last week that MPs on the Commons trade and industry select committee are likely to launch an inquiry to look at the issues surrounding the price rises.
