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11 May 2012: British Gas Warns of Price Rises
British Gas has warned of possible price rises today because of rising wholesale prices.This is the starkest warning yet that consumers will be faced with some hefty bill increases later this year. British Gas is the biggest energy supplier in the UK, supplying gas to almost 10 million households, so this should be taken very seriously.
From what we are hearing, other suppliers are feeling similar pressures, so further price rises across the board are very possible. Historically, the most common time for suppliers to up their prices is from July until September so we could actually see price hikes much before the winter. Wholesale gas increases of 15 per cent typically translate to bill increases of 10 per cent, so we could expect the average bill to rise by around £80 a year. On top of this, British Gas has also said that other costs have increased by £50 per household. In total, this would translate to a £130 a year or 19 per cent gas price rise. This would take the average UK gas and electricity bill to over £1,400 a year, the highest ever in history and beating the previous record years of 2011 and 2008.
Many people will be asking themselves today how long before all my salary just goes on my energy bill? The news today is a stark, stark warning but the good news is that customers can do something about it. You can switch to a fixed rate tariff but you need to do it as soon as possible. The earlier the switch, the cheaper the prices will be. The best fixed deal available will save a typical household £268 a year.
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