British Gasoline to hike payments by virtually £100/yr after vitality value cap rise
British Gas is raising prices by the maximum allowed
The hike is down to energy regulator Ofgem raising the price cap on standard and default tariffs. It announced last week that from 1 April the cap for credit meter standard tariffs, based on typical use, will jump from £1,042/yr to £1,138/yr, due to rising wholesale costs. Remember though, this ISN’T the maximum everyone will pay. The cap sets a maximum charge on the rate you pay for gas and electricity – use more and you’ll pay more, use less and your costs will be lower.
If you’re with British Gas, here’s how your bills will change:
- If you have a credit meter and are on its standard variable tariff, the price will rise on 1 April. British Gas’s SVT prices are currently £1/yr below the cap, at £1,041/yr on typical use, but it’s going to increase them to the level of the cap – £1,138/yr.
- If you’re a prepay customer, the price will also rise on 1 April. British Gas’ only prepay tariff is a standard variable one. The price of that will rise by £87/yr on typical use, to £1,156/yr – again that’s the maximum allowed under the Ofgem’s separate prepay energy price cap.
- If on a fixed deal, the price WON’T change until your fix is up. However if your fix ends after 1 April and you don’t switch, you’ll be moved onto British Gas’ standard variable tariff, which will have become even more expensive as a result of the price rise.