British Gas to increase their prices
Following Ofgem’s announcement regarding the increase to the energy price cap in April 2021 two weeks ago, British Gas is the first of the UK’s largest energy providers to confirm it’ll be changing its prices.
Come April, the cost of British Gas’ default tariff will increase by £97 a year for a dual fuel bill. Meaning they’re taking full advantage of the adjusted energy price cap.
It’s expected this change will impact 2.3 million British Gas customers, who are either already on their default tariff or will soon be moved onto it when their fixed rate deal comes to an end.
A spokesperson for British Gas said:
Ofgem announced a new price cap on February 5, we’ve confirmed that we would move our SVT to the new Ofgem price cap level.
It’s likely that more energy providers will also take advantage of Ofgem’s announcement and we’re expecting more suppliers to begin announcing changes to their default tariffs.
Why has the energy price cap been increased?
The price cap has been increased due to a surge in global energy commodity prices has raised the cost of sourcing gas from the wholesale market. It also includes a £23 increase to assist suppliers in reclaiming cash missed because of unpaid bills during the coronavirus pandemic.
Ofgem has advised this allowance is intended to help energy suppliers in offering emergency financial assistance and payment plans to protect customers - particularly vulnerable customers.
It’s important to note, however, that the price cap and British Gas’ announcement only affects default (or standard variable rate) tariffs.
This means if you’re already on a fixed rate tariff with British Gas, this announcement won’t affect you.
If you are on a standard variable rate tariff (or your fixed-rate deal is due to end) you can expect an increase to your bills in April 2021. You can prevent this by switching your energy.
Beat the price hike by switching your energy
Switching your energy is the best way to protect yourself from price increases.
Fixed-rate tariffs are typically the cheapest deals available and you lock in the price you pay for your energy for 12 months or more. Switching through Monva is easy - we’ve taken the hard work out of price comparison. All you need to do is answer a few simple questions and we’ll take it from there, we’ll find you the best deal currently available on the market and you just need to click to switch.
This information is then securely stored in your free Monva account so that next team you want to search for a better energy deal you just need to refresh your search - you don’t have to start all over again.
From your account, you can also create alerts tell us how much you’d like to save and the next time we find a deal that could give you even more savings we’ll let you know!
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