Menu
09/09/2005
Gas and electricity prices to rise by over 14%
British Gas prices are set to rise by 14.2% for residential customers later in September.
The company blamed the increase on soaring oil and gas prices. The rise follows on recent similar price hikes by Powergen and EDF Energy.
The company said that the 14.2% increase in gas and electricity prices will take effect from 19 September 2005 and comes on the back of record highs in the cost of wholesale gas driven upward by record oil prices and declining reserves of North Sea gas.
British Gas pointed to a forecast that put gas prices for the second half of 2005 at 50% above the same period in 2004 and 31% above the market price for the first half of 2005. In the corresponding periods, electricity is 61% and 43% higher respectively.
British Gas said it was not fully passing through these higher commodity costs in this price increase as it continues to try to mitigate the impact on customers, including an intense focus on driving down operating costs.
Amid concern about the impact of rising energy costs on the fuel poor, British Gas will offer support to a quarter of a million of its most vulnerable customers through a rebate of up to £60.
One million customers who signed up to British Gas’ Price Protection, which caps energy prices until 2007, will not be affected by the price increase until April 2007.
British Gas will launch a further fixed price product, enabling dual fuel customers to fix their energy prices until 2010 at no extra cost.
The Managing Director of British Gas, Mark Clare, said: “We are no longer an energy island - spiralling world oil prices are now having an unprecedented impact on the cost of gas as the UK is now dependent on imports.
"In these difficult times it is more important than ever that our customers take action to save energy and so reduce their bills. British Gas already invests £130m a year in energy efficiency measures for customers and we will now offer additional incentives for those that are prepared to take action. We are also offering a winter rebate to offset the cost of this increase to our most vulnerable customers who would otherwise be hit hardest.”
While the company's pricing policy was to "fully recover the wholesale costs of energy" from customers, British Gas said that profits in the second half would be "significantly reduced".
(SP/MB)
The company blamed the increase on soaring oil and gas prices. The rise follows on recent similar price hikes by Powergen and EDF Energy.
The company said that the 14.2% increase in gas and electricity prices will take effect from 19 September 2005 and comes on the back of record highs in the cost of wholesale gas driven upward by record oil prices and declining reserves of North Sea gas.
British Gas pointed to a forecast that put gas prices for the second half of 2005 at 50% above the same period in 2004 and 31% above the market price for the first half of 2005. In the corresponding periods, electricity is 61% and 43% higher respectively.
British Gas said it was not fully passing through these higher commodity costs in this price increase as it continues to try to mitigate the impact on customers, including an intense focus on driving down operating costs.
Amid concern about the impact of rising energy costs on the fuel poor, British Gas will offer support to a quarter of a million of its most vulnerable customers through a rebate of up to £60.
One million customers who signed up to British Gas’ Price Protection, which caps energy prices until 2007, will not be affected by the price increase until April 2007.
British Gas will launch a further fixed price product, enabling dual fuel customers to fix their energy prices until 2010 at no extra cost.
The Managing Director of British Gas, Mark Clare, said: “We are no longer an energy island - spiralling world oil prices are now having an unprecedented impact on the cost of gas as the UK is now dependent on imports.
"In these difficult times it is more important than ever that our customers take action to save energy and so reduce their bills. British Gas already invests £130m a year in energy efficiency measures for customers and we will now offer additional incentives for those that are prepared to take action. We are also offering a winter rebate to offset the cost of this increase to our most vulnerable customers who would otherwise be hit hardest.”
While the company's pricing policy was to "fully recover the wholesale costs of energy" from customers, British Gas said that profits in the second half would be "significantly reduced".
(SP/MB)
Related UK National News Stories
Click here for the latest headlines.
04 February 2010
Energy Supplier Slashes Gas Price
British Gas has today cut its standard gas prices by an average 7%. The price cut, which will benefit 8 million households, takes effect immediately and makes British Gas, on average, the cheapest supplier of standard gas and electricity right across Britain - no matter which way customers choose to pay.
Energy Supplier Slashes Gas Price
British Gas has today cut its standard gas prices by an average 7%. The price cut, which will benefit 8 million households, takes effect immediately and makes British Gas, on average, the cheapest supplier of standard gas and electricity right across Britain - no matter which way customers choose to pay.
24 June 2005
Gas prices could rise again
British Gas has warned customers that gas prices could be increased again. Centrica, which owns British Gas, said that the price rises were being introduced because of expectations of an increase in wholesale prices. The price rises would follow a 12.4% increase in September last year and a further rise of 5.9% in January.
Gas prices could rise again
British Gas has warned customers that gas prices could be increased again. Centrica, which owns British Gas, said that the price rises were being introduced because of expectations of an increase in wholesale prices. The price rises would follow a 12.4% increase in September last year and a further rise of 5.9% in January.
31 July 2008
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
11 January 2012
EDF Energy Reduce Gas Prices By 5%
EDF Energy has announced it will cut its gas prices by 5% – becoming the first major supplier in 2012 to announce it will pass on falling wholesale prices to its customers. The company was the last of the major suppliers to raise its energy prices in the autumn.
EDF Energy Reduce Gas Prices By 5%
EDF Energy has announced it will cut its gas prices by 5% – becoming the first major supplier in 2012 to announce it will pass on falling wholesale prices to its customers. The company was the last of the major suppliers to raise its energy prices in the autumn.
12 October 2012
British Gas Price Rise
British Gas is to hike its domestic gas and electricity prices by an average of 6% on 16 November 2012. As a result, annual dual fuel bills for British Gas customers with average consumption will increase by around £80. British Gas knows that this £1.
British Gas Price Rise
British Gas is to hike its domestic gas and electricity prices by an average of 6% on 16 November 2012. As a result, annual dual fuel bills for British Gas customers with average consumption will increase by around £80. British Gas knows that this £1.
-
Northern Ireland WeatherThis Evening and Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
