British Gas electricity and gas prices will be hiked by 6% beginning November 16, 2012, with dual fuel bills to cost around £1.50 per week, or £80 a year, to the customers’ distress. As a consolation to help customers lower their electricity bills, British Gas is offering loft and wall cavity insulation for free, which can reportedly save homeowners in excess of £100 per year.
British Gas has estimated that more than seven million homes in Britain are not adequately insulated. British Gas is also launching a new tariff that not only fixes prices for a year at the new levels, but guarantees that should standard prices fall, customers’ prices will fall by the same amount.
British Gas is also offering a £130 credit on the annual electricity bill to senior citizens and others in need. It has emerged that consumers who have taken the available energy efficiency measures have reduced their gas consumption by as much as 40%.
British Gas reports that the rise in electricity and gas prices has become imperative to deal with the “rising wholesale prices, as well as higher costs to upgrade the national grid, and to deliver the Government’s policies for a clean, energy-efficient Britain”.
British Gas Managing Director Phil Bentley, explains, “We know that household budgets are under pressure and this £1.50 per week rise will be unwelcome. However, we simply cannot ignore the rising costs that are largely outside our control, but which make up most of the bill. Britain’s North Sea gas supplies are running out, and British Gas has to pay the going rate for gas in a competitive global marketplace.”
“Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers’ homes, and the costs of the Government’s policies for a clean, energy efficient Britain are all going up”, he added.