British Gas has become the latest Big Six supplier to announce a 10.5% energy price rise from April.
It comes after Ofgem confirmed an increase in the price cap for the standard variable and prepayment meter tariffs, which will affect around 15 million customers.
The energy price cap limits the amount suppliers can charge for each unit of gas and electricity and sets a maximum daily standing charge
The price rise announced by British Gas will add £119 to around four million customers’ energy bills, taking the total annual average to £1,254, in line with Ofgem’s price cap.
Customers with prepayment meters also face an increase of £107 a year.
With more suppliers expected to raise their prices to Ofgem’s new cap, more than half the energy customers in Britain could be affected.
Consumers are therefore being urged to shop around and switch to a better deal on the market.
Richard Neudegg, Head of Regulation at uSwitch said: “British Gas’ confirmation that it is hiking bills up to the maximum permitted by the price cap should surprise no one but that doesn’t mean their customers should fall for the price cap trap. Bill payers on standard tariffs cannot be ‘protected’ by a cap that will change every six months – these customers sit at the mercy of a spreadsheet.
“Nine in 10 energy deals available today are cheaper than the new cap will be. Now is the time for energy customers to grab one of those cheap deals and find themselves up to £324 a year better off.”
ELN has contacted British Gas for a statement.