The energy giant has announced rises to both gas and electricity prices from 16th November.
Energy giant British Gas has announced an average 6% rise in both its gas and electricity prices.
The rise will add an extra £80 a year to the average duel fuel bill and will come into force on 16th November.
Rising prices
This news follows on from a price hike announcement from SSE last month. It said it will increase prices by 9% on Monday (15th October).
Last year all the ‘big six’ providers pushed up their energy prices over the winter, with British Gas hiking prices by 18% for electricity and 16% for gas.
The rise has been blamed on an increase in the wholesale energy market which providers are now passing on to consumers, plus higher costs to upgrade the National Grid and Government policies for cleaner energy. However, we reported in May that profits at British Gas have risen by 200% over the past nine years, thanks to massive price increases in the consumer energy market, so there's seems little justification for the latest rise.
Based on past form, the other four major providers – EDF, E.On, npower and Scottish Power – will now almost certainly follow suit with rises of their own.
New tariff
British Gas has also unveiled a new tariff called British Gas Fix and Fall November 2013. This guarantees that customers’ prices won’t go up between 16th November this year and 30th November 2013. And if British Gas’ Standard Tariff falls during that period, prices on this tariff will be cut by the same percentage too.
How to avoid the price rises
If your energy provider decides to up its prices, the best option you have is to try and find a cheaper deal and switch. This is easier said than done, but will be harder when the remaining providers push up their prices.
There are hundreds of ways to save money on your energy bills but one of the best is switching, if you’re able to. Our comparison tables give a full look at the market and here we've listed the five current cheapest deals.
Cheapest energy tariffs on the market
|
Supplier |
Tariff |
Average cost |
Average saving* |
Notes |
|
iSave v12, variable |
£1,054 |
£316 |
Fixed for three months, paper bill available for £1 per month. Cancellation penalty of £30 for fuel in the first three months, no penalty thereafter. |
|
|
Energy online, fixed until Jan 2014 |
£1,071 |
£299 |
Rates guaranteed to be at least 3% cheaper than npower standard until 31st Jan 2014. There is a £30 per fuel cancellation penalty if you leave this tariff before 31st Jan 2013 |
|
| npower | Bill Saver 2013 | £1,086 | £284 | Rates guaranteed to be at least 5% cheaper than npower standard until 30 Nov 2013. £30 per fuel cancellation penalty if you leave this tariff before 30 Nov 2013 |
|
iSave fixed v4 |
£1,087 |
£283 |
Prices fixed until 31 March 2014. Paper bills available for £1 pm extra. There is a £30 per fuel cancellation penalty if you leave this tariff before 31 March 2014. |
|
|
New energy fixed |
£1,088 |
£282 |
Prices fixed for 12 months, there is a cancellation penalty of £30 for gas and £30 for electricity. |
|
|
Help Beat Cancer Discounted Energy Aug 2015 Online |
£1,118 |
£252 |
Rates guaranteed to be at least 3% cheaper than ScottishPower Standard until 31 July 2015. Donations to Cancer Research UK (£15 on joining and £10 a year). No cancellation penalty. |
* based on average dual fuel tariff costing £1,370 once SSE and British Gas price rises take effect (source: energyhelpline)
Free insulation
British Gas is one of two major providers still offering free cavity wall and loft insulation, even if you're not a customer. To find out more about this, read How to get free cavity wall and loft insulation.
If you're on certain benefits, you may be eligible for help with insulation under other schemes. Find out more in Don't miss out on free insulation and heating schemes.
Are you a British Gas customer and are you worried about the price rise? Let us know via the Comments box below.
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