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Centrica hikes tariffs for British Gas variable tariff customers again

Staff Writer | August 8, 2018
Centrica was the source of more misery for British Gas customers not on a fixed tariff on Wednesday, confirming that its Standard Variable Tariff was to increase yet again due to what it described as rising wholesale costs.
Britain   That would take the average bill to £1205
Centrica said the tariff, which was withdrawn for all new customers on 31 March after significant pressure from consumer advocacy groups, would increase for existing customers on 1 October by 3.8%.

That would take the average bill for a typical dual fuel customer to £1205, which Centrica said was "just below" the average of the standard variable tariffs for the Big Six energy suppliers, and represented an increase of £44.

Centrica said it was increasing our prices due to an approximately 20% rise in the costs of buying wholesale energy since April, as Ofgem cited when they announced an increase in the level of the prepayment meter cap on 7 August.

It said it would contact 3.5 million customers who would be affected, so they knew how their prices would change, and inform them of their alternative fixed-term offers.

A total of 2.4 million customers on fixed price products would be unaffected by the price increase.

Centrica claimed that until now, it had been able to shield customer bills from the full impact of the increase in wholesale costs as it had hedged its energy costs.