British Gas price increase of 5.5% takes effect
British Gas was the first supplier of the Big Six to announce a price hike this year, and its 5.5% hike goes into effect for 4.1 million customers today (May 29).
But it’s not just British Gas customers who should now be doing their shopping.
Those breaking out of fixed deals face a double price hike, as five of the six big suppliers and nine small energy companies have also increased their tariffs this year.
Plans that end could cost £ 401
27 vendors have 95 fixed agreements expiring in May and June, after which their customers could benefit from expensive standard variable rates.
To make matters worse, a number of price increases will go into effect that will lead to an even greater increase in the costs of a fixed, rolling tariff agreement.
Eight of the 27 vendors whose agreements end this month have announced price increases so far in 2018. Before prices increased, customers with a six major vendors and a fixed deal would have had to face bill increases of an average of £ 181 (19%), but after the price increases it climbed to £ 226 or 23%.
If no action is taken to change plans, the customers facing the biggest increases are those with Go Effortless Energy (£ 401), npower (£ 399) and Scottish Power (£ 365).
Ofgem’s rules allow customers to switch providers without paying an exit fee 42-49 days prior to their plan’s end date, so consumers are free to shop without penalty.
Are you one of those affected?
If you haven’t changed in about 12 months, it’s worth checking the end date of your plan on your bill. Once this date arrives, you will be transferred to a plan of your choice of provider, this includes expensive standard variable rates.
Compare to see how much you could save by choosing a new fixed plan. It only takes about 10 minutes, your postal code and a recent invoice. If you need help finding information on your bill, such as your kWh usage or your plan end date, our guide can help: How to change: step by step.
Don’t be surprised by the price increases
Change your energy in minutes
Need help? Don’t worry, our guide can walk you through everything you need to do: How to change: step by step