Energy price hike hits millions more

WATCHDOGS yesterday urged families to shop around after British Gas and Scottish Power became the latest of the Big Six energy companies to push prices to the limit of the new cap on tariffs.

Ofgem announced on February 7 that it would increase the price cap for standard variable gas and electricity tariffs by £117 to £1,254 a year from April 1.

In just a few days, Centrica – which owns British Gas – is expected to announce pre-tax earnings of £1.4billion for 2018.

Scottish Power’s £117 rise will affect 900,000 customers from April. Its prepayment meter customers will face a £106 annual rise.

The British Gas increase will affect about four million customers, who will also pay £117 more over a year. Prepayment meter customers will pay £107 more.

The price rises have down to increases in energy costs.

Last night, consumer groups urged customers to look for better deals.

Stephen Murray, energy expert at been put wholesale MoneySuperMarket, said: “Ofgem opened the door to supplier price rises earlier this month and now the Big Six are kicking it down.

“There’s really only one way for people to bring their bills down – and that’s by switching.”

Richard Neudegg, head of regulation at uSwitch.com, said: “There are nearly 200 energy tariffs which are cheaper than the new price cap will cost. Consumers can grab savings of over £300 by switching now.”

British Gas and Scottish Power’s announcements made them the fourth and fifth of the Big Six suppliers to raise the cost of their standard variable tariffs to match Ofgem’s price cap.

There are fears that SSE will raise prices within days.

British Gas declined to comment specifically on its latest price rise but referred to a statement last month when it said it intended to adjust its standard variable tariff and default tariff pricing to broadly reflect Ofgem’s cap.