FUEL’S GOLD
British Gas customers are hit by 5% price rise Top four bigwigs in line for £2m bonus bonanza
We fully understand increase adds extra pressure MARK HODGES HEAD OF CENTRICA CONSUMER
FOUR British Gas fatcats will be paid nearly £2million in bonuses next month – just as customers are “fleeced” by price hikes.
Iain Conn, boss of British Gas owner Centrica, is among those who will receive a shares windfall.
The firm yesterday confirmed it would impose inflation-busting price rises at the end of May.
Its standard variable tariff gas and electricity prices will jump by an average of 5.5%, increasing its average annual bill by £60 to £1,161.
British Gas blamed higher wholesale costs, plus government policies. Rivals are expected to follow suit. Mark Hodges, head of Centrica Consumer, said: “We fully understand any price increase adds extra pressure on consumers’ households bills.”
He is set to receive a £300,000 payout. Shares earmarked for Mr Conn are worth £447,000, with £266,000 for Centrica finance boss Jeff Bell and Mark Hanafin, head of Centrica Business, is in line for £873,000.
The “vesting” of the shares mean they cannot sell them until 2020.
Critics accused British Gas of punishing loyal customers as those on standard variable tariffs have often stayed the longest. The Government is preparing to slap a cap on rip-off SVTs.
Joe Malinowski, of TheEnergyShop. com, accused British Gas of shamelessly hiking bills before the cap. “You might as well get as much cash as you can before the cap hits. Fleece them for what you can,” he said.
Victoria MacGregor, of Citizens Advice, said: “There are serious question marks over whether these rises are justified.”
Energy Minister Claire Perry called news of an increase “disappointing”.