British Gas hikes energy prices for second time this year

The 3.8% increase will come into effect on 1st October 2018

By Priyanka Shrestha

British Gas is to increase prices for the second time this year that will add £44 to the annual energy bill.

Owner Centrica said the 3.8% increase in its standard variable tariff (SVT) will see the average dual fuel bills rising to £1,205 a year from 1st October 2018.

The Big Six supplier said that is due to an approximately 20% rise in wholesale energy costs since April, when it last announced a price rise – but claims it is still “just below” the average of the larger energy companies.

Around 3.5 million customers will be affected by the increase in gas and electricity prices – that’s a fall from 4.3 million at the start of the year.

The SVT was withdrawn for new customers in March and any customer who does not actively choose a new tariff after the expiry of their fixed-term contract will be rolled on to its default 12-month fixed term Temporary Tariff.

The price of this tariff for new customers from 1st October will also increase to £1,180 – £25 less than the standard tariff.

Mark Hodges, Chief Executive of Centrica Consumer said: “We understand that any price increase adds extra pressure on customers’ household bills. However, this reflects the sharp rise in wholesale energy costs.

“In response to the rapidly rising wholesale market costs, since April a number of other energy supply companies have increased their SVT prices and Ofgem have also announced a second increase to the prepayment meter cap.”

EDF Energy also announced a second price rise this year, which will come into effect on 31st August.