British Gas will increase the average fuel bill of 3.5 million customers in its second price increase this year.
The country’s largest energy supplier blamed the rising costs of wholesale energy prices for the 3.8% increase in standard variable tariffs (SVTs), which came just four months after April’s 5.5% rise, earlier this year.
As of 1st October, dual consumers can expect to pay £1,205 a year – £104 more than at the beginning of the year after wholesale prices rose by 20% since April, according to British Gas owner Centrica.
Mark Hodge, Centrica consumer business CEO, said: “We have today reluctantly announced plans for an increase in our standard variable tariff. We understand that any price increase adds extra pressure on customers’ household bills. However, this reflects the sharp rise in wholesale energy costs.”
British Gas customers have been encouraged to shop around for cheaper deals by third party companies, which many people did following its first price hike, when the Big Six firm lost 341,000 customers.