British Gas, a subsidiary of Centrica, has announced it will increase its Standard Variable Tariff (SVT) by £60 to £1,161 on 29th May – an average rise of 5.5% for its typical dual fuel customer.
The price hike is largely a result of rising wholesale and policy costs, which have come partly due to the government’s schemes to reduce carbon emissions.
Government policies to cut carbon emissions, as well as increased costs of wholesale gas and electricity costs were cited by British Gas to be the main cause of the increase in energy bills, which the company said: “Should be paid for in a fairer way such as through general taxation.”
With the exception of the subtle rise of EON bills, this represents the first of the Big Six to increase energy bills this year.
This is not the first-time government policies have led to a hike in energy prices for consumers.
A report released by Aurora Energy Research, in October last year, found that the UK Government underestimated the amount of subsidies it will have to pay to UK wind farms by £80 million per annum.
Mark Hodges, Chief Executive, Centrica Consumer, said: “We fully understand that any price increase adds extra pressure on customers’ household bills. This increase we are announcing today is reflective of the costs we are seeing which are beyond our control.”
In January, Centrica CEO Iain Conn said that political tensions are to blame for the vast expense of the renewable energy industry, which is being passed onto consumers.