British Gas is to increase its energy bills by £97 after Ofgem’s price cap rise

More than 2 million British Gas customers will see their energy bills jump by nearly £100 a year from April. This comes as the supplier announced it will raise its prices to the maximum amount allowed following Ofgem’s new price cap announcement. 

UK households on the supplier’s dual fuel standard variable tariff (SVT) will see their bills rise by £97, taking them to £1,138 a year. This is in line with the latest price cap unveiled by the energy regulator earlier this month.

However, consumers are being advised that they can avoid these rising costs by carrying out an energy comparison to find and switch to a cheaper deal.

British Gas is the first of the ‘Big Six’ to act

British Gas is the first of the country’s ‘Big Six’ energy suppliers to make such an announcement. According to The Guardian, this move is expected to net the company £230m in extra revenue.

It is also anticipated that more suppliers will soon follow the example of British Gas, with further announcements of rising bills for those on equivalent SVTs expected in the coming weeks.

Customers can bring down costs by switching

British Gas’ 2.3m affected customers are only a part of the 11m households that are currently on SVTs – which means more of us are also likely to see increases to our bills. However, if you are on a SVT, you can switch supplier at any time to get a better deal.

Sofia Hutson, energy spokesperson for comparethemarket.com, commented on the price rises and again highlighted the benefits of switching:

“The regulator’s energy price cap increase has given suppliers an official licence to increase prices, with British Gas announcing it will be the first to do so since the announcement.

“Given the challenging financial position many households find themselves in at the moment, with British Gas increasing its prices and other suppliers likely to follow, more customers will be at risk of being pushed into the red.

“The price cap does not represent good value for money and one way customers can bring down the cost of their energy is by switching supplier. We would encourage every household impacted by these increases to see if they can get a better deal elsewhere.”

Switching is very easy and can be done quickly using an energy comparison service or by going direct to your supplier and enquiring about a better deal. If you use an online comparison service, you’ll also be able as to see what the best energy deals are near you.

Our service, for instance, can do this, but it also lets you see who the best energy suppliers are right now and what different options you have on things like green tariffs and the extras on offer with different companies.

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