British Gas raises tariff

British Gas customers still on the company’s standard variable tariff (SVT) have been urged to switch to a cheaper deal or face an “infuriating” second price hike within the space of a few months.

British Gas is raising the cost of its SVT by 3.8% on October 1, meaning the average bill for 3.5 million existing dual fuel customers will increase by £44 to £1,205. The increase is the second for British Gas customers this year, after the company announced in April that it was increasing its prices by an average 5.5% from May 29 for both its SVT and its new Temporary Tariff fixed-rate deal, which replaced the standard tariff at the end of March.

The company blamed the latest increase on a 20% rise in the costs of buying wholesale energy since April.

Which? managing director of home products and services Alex Neill said: “This second price rise within the space of a few months will be infuriating for customers who have now seen their bills hiked by an average of £104 in six months.

“They should take the power back into their own hands and radically change how much they pay, simply by choosing a better deal. Before the energy price cap comes into effect later this year, customers still stuck on poor value standard tariffs should look to switch now as they could potentially save almost £400 a year.”

Citizens Advice chief executive Gillian Guy said: “A second significant price hike in the space of a year will be a bitter pill to swallow for hard-pressed BritishGas customers. Those people most likely to be on a standard variable tariff–including the elderly, people on low income sand those with disabilities–will particularly struggle to cope with yet another bill increase.”