Boycott rip-off power firms, watchdog urges

HOUSEHOLDERS should boycott rip-off energy firms, the industry’s watchdog said yesterday, as speculation grows that British Gas is about to hit millions with a price increase.

Britain’s biggest supplier is said to be planning to raise bills for its 11million customers by up to 9 per cent.

That would add an average of almost £100 a year for millions of households on its standard variable tariff (SVT).

Just last week, rival power giant Npower announced a price rise that will add £109 a year to bills.

Industry rumours of British Gas’s plans emerged as the boss of the energy watchdog Ofgem effectively advised customers to spurn firms that impose unfair increases.

Chief executive Dermot Nolan said there was no justification for a rise in the cost of gas and electricity.

Referring to Npower, he added: ‘One company has raised prices more than expected. It seems to me to be a lot.

‘The strongest message I would give to customers is that you don’t have to bear the cost of their decision.

‘You can switch, you can save £200 to £300 – look at all the other companies.’ Laura Hill, of the campaign group Switched On, said: ‘We are disgusted to hear that British Gas are again planning to hike up prices.

‘People need a genuine alternative to these rip-off merchants.’

The average British Gas bill for gas and electricity on its standard variable tariff is £1,044, according to Ofgem. A 9 per cent rise would add £94.

The news comes a week after MPs on the Commons business select committee accused the big energy firms of behaving like violent partners and ‘beating customers black and blue’.

The Competition and Markets Authority says customers are overpaying by £1.4billion a year.

Pete Moorey, from the consumer group Which?, said: ‘Energy as a sector is distrusted almost more than any other. The only sector that is distrusted more is used car dealers.’

British Gas is expected to blame any rise on high wholesale costs and the Government’s plan to install a smart meter in every home and business.

A spokesman said: ‘We never speculate on future pricing decisions.’