British Gas electricity price hike the 'ultimate slap in face' for families

Electricity Pylons 1

Electricity Pylons 1

British Gas and the UK Government have blamed each other for the rise, with Centrica, the firm that owns the energy company, saying that government policy has driven up prices - something the Tories deny.

For a typical household on dual fuel, that means that the average annual bill will increase by 7.3 per cent or £76.

It was titled "Why we've had to raise electricity prices - our first increase since November 2013.' However, the body of the text read only 'blah blah", suggesting the upload was an error.

At the same time, Iain Conn, the chief of British Gas's parent company Centrica, saw his pay increase by 40 per cent from £3.02m in 2015 to £4.15m in 2016, enough to pay the heating and lighting bills of 4,000 British Gas customers.

The firm shed 30,000 United Kingdom business customers and posted a profit of £0 versus £31m the prior year.

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"We're concerned this price rise will hit many people already on poor-value tariffs", a spokeswoman for the British government said.

"We will introduce a safeguard tariff cap that will extend the price protection now in place for some vulnerable customers to more customers on the poorest value tariffs ... the safeguard tariff cap will protect customers who do not switch against abusive price increases".

It's due to the increase in electricity costs.

And mounting utility bills combined with flatlining household incomes and poor building standards on insulation, mean the problem has been growing steadily in the United Kingdom for years.

He says there's not been a rise for almost 4 years.

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But Labour's shadow energy minister Alan Whitehead said the "whopping price increase" was unjustified - and accused the Conservatives of breaking a manifesto pledge to impose a cap.

Will Hodson, co-founder of consumer collective The Big Deal, said it was the "ultimate slap in the face for families" and "unjustifiable".

Theresa May attacked Npower's planned 15% price hike as "shocking" earlier this year and announced plans for an energy price cap in May. We realise that 3.1 million people are affected. Instead the plan is to safeguard customers on the poorest value tariffs.

"These include phasing out the standard variable tariff and levelling the playing field so all suppliers pay a share of energy policy obligations".

He commented: "We have made further significant strategic progress, continuing to reallocate resources away from our asset businesses towards our customer-facing businesses".

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British energy supplier Centrica said it expects to produce up to 30 billion cubic feet (bcf) of gas from its Rough gas storage site by the first quarter of next year, subject to regulator approval.

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