United Kingdom govt says concerned about Centrica's planned power price rise

British Gas to hike energy prices by whopping 12.5

THE TORY Government and energy giant British Gas have come under fire after the firm announced it is to hike electricity prices by 12.5 per cent for its 3.1 million customers.

British Gas said that the electricity price hike reflected the increasing costs of energy and delivery to customers' home, stating that costs have increased 16% since 2014.

That was blamed on the loss of 377,000 customers, a cap on pre-pay energy prices and unseasonably warm temperatures that reduced energy demand.

British Gas will increase its electricity tariffs by 12.5pc in September 2017: Pictured: British Gas engineer.

Alex Neill, Which? Managing Director of Home Products and Services, said: "Hard-pressed consumers waiting to see how the Government will tackle costly standard variable tariffs will be disappointed to see prices rising".

Shares in Centrica rose 2.32% to 203.10p in morning trading.

Figures published by Ofgem in December showed 74 percent of British Gas customers were on its standard tariff, which is typically more expensive than other offers.

The group said it held off from the price rise a for "up to six months longer than some of our competitors".


The Department for Business, Energy and Industrial Strategy called for "rapid reform", of price regulations after British Gas announced it would hike prices by 12.5 percent beginning September 15.

Details of the change in tariff came as Centrica revealed British Gas lost 377,000 United Kingdom customer accounts in the first half of 2017.

Centrica's release on Tuesday gave a bit more detail of the reason for the rise in electricity prices, saying: "The price rise reflects increasing delivery and environmental and social policy costs since 2014, and also the growing additional costs related to the United Kingdom smart meter rollout".

He stormed: "What the Government should have done about it, because there was an agreement, essentially, coming into the election, that there should be a price cap operating across the market, and also action should be taken on the standard variable tariffs that so many customers are on".

Looking ahead to fiscal 2017, Centrica said it is on track to achieve the group targets set out at the 2016 preliminary results in February.

British Gas owner Centrica claim the rise "reflects an underlying increase in policy and transmission costs". The average household bill on its dual fuel tariff is forecast to rise by about GBP76 per year to GBP1,120, up 7.3%.

Gillian Guy, chief executive of Citizens Advice, said: "Customers of all large energy firms have now seen their bills rise this year so it is clear that something needs to change".

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.

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