British Gas say they recognise that energy bills are a "real worry for hard-pressed households", particularly at a time when the cost of living is rising faster than incomes. But has announced an average increase of 9.2% in household energy prices – 8.4% on gas and 10.4% on electricity – from 23 November 2013.
British Gas say that more than 500,000 of our elderly and most in need customers will be protected by an automatic discount to offset the price increase throughout the winter – worth £60 per dual fuel household. This is in addition to the £135 that will be paid to many of these customers who qualify for the Government’s Warm Home Discount scheme. British Gas say it has set the widest criteria of all the major suppliers for this scheme, helping as many customers as possible. Today’s announcement, they claim it will add about £2 a week to the average dual fuel bill, reflects the increasing cost of: buying energy in global markets, delivering gas and electricity to the home, and the Government’s social and environmental programmes, which are paid for through customers’ bills.
Ian Peters, Managing Director of British Gas Residential Energy, said: "I know these are difficult times for many customers and totally understand the frustration that so many household costs keep on rising when incomes aren’t keeping pace. We haven’t taken this decision lightly, but what’s pushing up energy prices at the moment are costs that are not all directly under our control, such as the global price of energy, charges that we have to pay for using the national grid that delivers energy to the home, and the cost of the Government’s social and environmental programmes."
Continuing Mr Peters said: "Energy efficiency is the best way to keep bills down, and I encourage anyone who has not benefited from them to go online and check if they are eligible. On average, insulation can save you around £200 a year. A price rise doesn’t necessarily mean energy bills have to go up too. The amount you pay depends not just on the price, but on how much gas and electricity you use. Energy efficiency is making a real difference. We’ve already provided three million customers with insulation, help and advice in managing their bills and keeping their homes warmer for less. Please visit My Energy or contact us on 0800 980 1917 if you’re worried and we’ll see what we can do – there’s a lot of help available."
Energy Secretary Edward Davey, commenting on British Gas's announcement that they will increase gas and electricity prices, said: "This is extremely disappointing news for British Gas’s customers, and the company will need to justify this decision openly and transparently. The competition we’ve introduced to the energy market means people have a choice. They can look for the best deal available; including from smaller suppliers, with the confidence that switching will make an immediate difference to their bills and force the Big 6 to compete on price. I recently wrote to energy companies asking them to publish their costs of delivering the Energy Company Obligation. Today’s announcement shows why that’s necessary, because British Gas’s ECO numbers just don’t add up when you look at what other energy companies are saying about their costs.”
Caroline Flint MP, Labour's Shadow Energy and Climate Change Secretary, has also commented saying: "These latest price rises show clearer than ever why Labour’s price freeze is needed. People are sick and tired of being left out of pocket because of David Cameron’s failure to stand up to the energy companies. Britain’s energy market isn’t working for ordinary families and businesses. Labour's energy freeze will save money for 27 million households and 2.4 million businesses and our plans to reset the market will deliver fairer prices in the future.”
Andrew Cooper, Green Party Environment Spokesperson, said: "As expected British Gas have followed on from SSE’s price rise last week. We can confidently expect the other four suppliers to fall into line with their price rises over the following weeks. The pattern of price rises by the Big Six cartel is now well established and predictable. What is disappointing is when energy suppliers place an over-emphasis on what are labelled as ‘green taxes’ much of which is there to provide support for people on low incomes to properly heat and insulate their homes. Only one sixth of SSE’s price rise last week could be attributed to ‘green taxes’
Continuing Mr Cooper said: "What is lacking is a government taking the lead on a large scale energy efficiency programme to help permanently reduce fuel bills for everyone. The Government’s Green Deal is a failure with only 12 households in the UK having taken up the governments flagship energy efficiency scheme. The Coalition lacks the skills and the imagination that is needed to help create jobs in the energy efficiency sector and to develop schemes which have mass appeal."
Consumer group Which? also have criticised British Gas' decision, their executive director Richard Lloyd said: "This price rise is yet another blow to consumers at a time when rising energy prices are consistently one of their top financial concerns. In recent years we've seen a domino effect on energy price rises where all the major companies follow suit. We wait to see what the other suppliers decide to do, but so far First Utility is the only company to confirm they will not be raising their prices. Current plans to reform the energy market simply don’t go far enough. We want the Government to intervene to make sure everything possible is done to keep prices in check. We need simpler pricing, we need to break the stranglehold of the biggest energy companies by separating domestic supply from generation and the Government must make sure that its own policies are not adding unnecessary costs to consumers’ bills."
