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British Gas to raise prices by 6% from 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. However, let's not forget 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.
The other four major providers – EDF, E.On, npower and Scottish Power – will now almost certainly follow suit with rises of their own.
How to avoid the hike
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 your supplier. In this table you'll find five of the best deals at the moment, but the most attractive deals vary depending on your circumstances, so it's best to use a comparison engine if you can.
Cheapest energy tariffs on the market
Supplier | Tariff | Average cost | Average saving* | Notes |
First Utility | iSave v12, variable | £1,054 | £256 | 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. |
NPower | Energy online, fixed until Jan 2014 | £1,071 | £239 | 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 |
First Utility | iSave fixed v4 | £1,087 | £223 | 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. |
OVO Energy | New energy fixed | £1,088 | £222 | Prices fixed for 12 months, there is a cancellation penalty of £30 for gas and £30 for electricity. |
Sainsbury’s Energy | Online January 2014 | £1,120 | £190 | 6% discount against Clear & Simple prices until 31st January 2014. There is a £30 per fuel cancellation penalty if you leave this tariff before the contract end date of 31/01/2014. |
* source: energyhelpline.com. Based on average dual fuel tariff costing £1,310 (Source:OFGEM 1 Aug 2012)
