Price Rise Alert: British Gas hikes prices by 5.5%

October 10th, 2019

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British Gas was the first out of the ‘big six’ suppliers to increase prices and as it currently stands, the remainder of the ‘big six’ have followed suit.

As of the 29th May 2018, around 4 million customers saw their prices increase by an average of £60/year as British gas increased prices not only on their standard variable tariffs but also its new Temporary Tariff fixed-rate deal. Thankfully its 3.7million customers who are classified as vulnerable were unaffected by the change as they have a prepayment meter or are in a fixed-term contract.

Please note, the backend supplier for Sainsbury’s energy is also British Gas, so if you are on the standard variable tariff with Sainsbury’s energy then you too will be affected by the price hike.

What is the price change on the British Gas’s energy tariffs?

The British Gas price increase is only applicable to those who are on the energy company’s standard variable tariff or Temporary Tariff.

Those on the standard variable tariff will see their prices increase by 5.5% or £60/year.

Those on the Temporary Tariff will also see their prices increase by around 5.5%.

Why has British Gas increased prices?

According to Mark Hodges, Chief Executive Officer at British Gas, one of the reasons for the price increase stems from, “government policies”, which are intended to transform the energy system but invariably put pressure on customer bills.

He also states, “We continue to call on Ofgem to end the standard variable tariff across the market which would encourage customers to proactively seek the best energy deal”.

How else can I get around the price hike?

Regardless of which energy supplier you are with, the standard variable tariff is the most expensive tariff offered by your energy supplier and there are no exit charges so it is highly recommended that you compare and switch to a cheaper supplier.

Switching to a cheaper energy deal is very easy with FreePriceCompare as you can actually compare and select the cheapest supplier from our results page in 5 minutes.

Once selected, FreePriceCompare will handle the whole process for you, including letting your previous supplier know that you would like to switch energy suppliers. The whole process takes around 21 days and you are guaranteed to be never left without gas or electricity supply.

Please note if you are in a contract, you can be subjected to exit fees so you can either wait for the contract to come up for renewal or you can switch now if the savings are significant. Remember tariffs can go up in price, so if you can save a lot of money by paying the exit fees then it is worth a serious consideration.

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