Friday 16 November 2012

British Gas price rise kicks in today

The 6% price hike announced by British Gas last month will come into effect today.

The rise, which is expected to affect around 12 million households, means the average bill for its domestic customers will go up from £1,260 to as much as £1,346 a year.

The news comes despite the supplier’s owner Centrica made a profit of £1.45 billion in the first half of the year, including a 23% rise in pre-tax profits at British Gas.

Ann Robinson, Director of Consumer Policy at uSwitch.com said: “This week the cold reality of winter price hikes starts to strike as British Gas customers face the sting of a 6% increase on their gas and electricity bills.

“The timing could not be worse - as winter makes its presence known, the cost of heating our homes will be taking its toll on cash-strapped consumers. With bills reaching an all time high, it’s no surprise that almost nine in ten households (87%) will be rationing their energy usage this winter. This means that many will be potentially gambling with their health and well-being.”

SSE, who also announced a rise in gas and electricity prices earlier this year, said it has also seen its half-year profits rise by 38.3%.