British Gas, the largest energy supplier in the UK, announced today that its domestic customers will be paying an extra 9.2% on their dual-fuel bills from 23 November this year. Global energy prices, the cost of delivering gas and electricity to customers’ homes and the government’s ‘green’ levies were all cited as reasons to increase the gas and electric supplier’s prices.
According to the BBC, this rise in energy prices will affect almost eight million UK households in the UK, with the average annual household bill rising by GBP123. The increase includes an 8.4% rise in gas prices and a 10.4% increase in electricity prices.
A British Gas competitor, SSE, has also declared that it will put its prices up by 8.2% from 15 November. This means that dual-fuel bills will increase to an annual average of GBP1,444. However, price increases vary in different UK regions, with the largest increase for dual-fuel bills in the Scottish Hydro Electric region being 11.2% and the lowest increase being 6.8% in the south west of England.
The BBC also said that British Gas has made a profit of five pence in the pound after tax. Its customers used 18% more gas in the first four months of 2013 due to the exceptionally cold weather and the energy supplier reportedly said it would use the profit boost to hold off future price rises.
Ian Peters, managing director of British Gas residential energy, stated on the company’s website: “I know these are difficult times for many customers and totally understand the frustration that so many household costs keep on rising when incomes are not keeping pace.”
“We haven’t taken this decision lightly, but what is pushing up energy prices at the moment are costs that are not all directly under our control.”