British Gas announces major hike in energy prices leaving millions of customers paying more

Price hike: British Gas
PA
Robin de Peyer1 August 2017

Millions of customers face a major hike in their energy bills after British Gas announced it will increase electricity tariffs by 12.5 per cent.

The move, which will take effect from September, will leave 3.1 million customers paying more on their monthly bills.

The price hike emerged after British Gas mistakenly published an incomplete statement announcing a change in pricing on its website.

It will mean an average dual fuel bill for a typical annual household tariff will rise by £76 to £1,120 - a 7.3 per cent increase, according to British Gas.

Centrica-owned British Gas said the price rise is its first since November 2013 and the group pledged to help protect more than 200,000 vulnerable customers from the increase.

Details of the increase comes as British Gas owner Centrica posted half-year results revealing that earnings from its consumer business plunged by more than a quarter after it lost 377,000 UK customer accounts in the first half.

Underlying operating profits from its UK home energy supply arm tumbled 26 per cent to £381 million as the group said it was also hit by warmer than normal temperatures and the pre-payment tariff cap.

Centrica's overall underlying operating profits were 4% lower at £816 million for the six months to June 30.

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