British Gas customers have reacted with fury after receiving emails from the company informing them their bills will be going up by up to 54 per cent.
The energy company has come under fire after families, who have already been hit hard by rises in the cost of living, were told they need to find hundreds of pounds in spare change to afford their gas and electricity bills.
The increases, which will come into effect from April 1, will be a bitter pill to swallow for many, especially after the company’s household energy supply division saw profits of £118 million last year.
The rise comes after Ofgem, the energy regulator which sets the limits for how much consumers have to pay, hiked the price cap by 54 per cent after an increase in global gas prices.
Following this 22 million consumers across the UK were warned to expect large increases on their bills, with some expected to pay more than £2,000 a year.
Customers of British Gas have now started to receive their revised bills following the announcement, with many spitting feathers as the cost becomes clear.
Dr Lisa Coombes was shocked to find her total gas and electric bill will rise by more than £1,000 from April 1. She said it was ‘far, far worse’ than she had imagined
Dr Lisa Coombes voiced her shock as her bills rose by more than £1,000.
She said: ‘Just had my energy bill estimates from British Gas and it’s far, far worse than I imagined. Estimated gas increase of 72 per cent and electric by 40 per cent.’
Others were left wondering how they were going to afford the increase.
Phil Core said: ‘Just had an email from British Gas. Our annual gas bill is going up by an estimated £400. And our annual electricity bill by £300. How is anyone supposed to be able to afford this?’
@_Char_C_ said: ‘Had my email off British Gas yesterday telling me my bills will be going up by 54 per cent from April. It’s ok, I didn’t want to be warm anyways.’
Becky Mollon said: ‘Just had an email from British Gas saying my energy bills are pretty much doubling on 1st April. April fools, right?’
@MsPottingShed said: ‘Had an email from British Gas with an estimate of how much our bills (annually) will increase from April. £600! A price hike of this scale will end up killing people. Many will have no choice but to turn off heating.’
British Gas customers have taken to social media to voice their disapproval at the increase in prices, as the cost of living goes up across the UK
Centrica, which runs British Gas, has been contacted for comment.
On its website, Centrica says it knows ‘many customers will be concerned about energy prices’ and the scheduled increase.
A British Gas spokesperson said on the website: ‘The rising cost of living, including the price of energy, is a major concern for UK consumers and we know many of our customers will be deeply worried about Ofgem’s price cap increase coming into effect on 1 April.
‘Since the start of the energy crisis, we’ve been working closely with Government and Ofgem to explore how best to shield customers from the global forces which are driving energy prices upwards.
‘At British Gas we’re also providing help to those who need it most through the British Gas Energy Trust and our recently launched £2million Winter fund which is targeted to help our most financially vulnerable customers.’
In January the firm was presented with Money Mail’s Wooden Spoon Award for the worst customer service in Britain, voted for by readers.
This breakdown shows that even smaller homes can expect to see their energy bills almost double under the new price cap
Ofgem shows the breakdown of costs in the energy price cap for a dual fuel customer paying by direct debit with typical use
This came after complaints about how it dealt with phone enquiries and its HomeCare cover, with customers saying they were left for weeks without heating or hot water after engineers repeatedly failed to turn up as promised.
British Gas, which has faced criticism recently for its flexible home-working policy, promised to improve its service, blaming Covid-related staff shortages and strike action.
Ofgem said allowing energy firms to increase prices was needed as current levels do not reflect the amount that suppliers are paying for gas.
It said that at the moment companies can’t afford to supply electricity and gas to customers for less than they have paid for it, something that has led to 29 energy firms leaving the market of being put into special administration.
Speaking earlier this month, Jonathan Brearley, chief executive of Ofgem said: ‘We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.
‘The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.
‘Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.
Earlier this month the Government announced it would provide some help for people struggling with their bills.
Rishi Sunak, Chancellor of the Exchequer, said every British household will get an upfront £200 discount on their bill in October – but this will be done in the form of a non-optional loan from the Government to energy firms that will be taken back through future energy bills.
In return for the discount, Britons will face a hike to their bills by £40 per year over the next five years from 2023 to recoup its cash. There is no option to opt out.
Meanwhile household bands A to D will get £150 rebate on their council tax. However bills are set to go up this year which will likely cancel out the discount.
If all goes to plan, wholesale energy prices will drop so households can pay back what they owe, without a major rise in bills.
A Government spokesman said: ‘We recognise people are facing pressures with the cost of living, which is why we are providing support worth around £12 billion this financial year and next.
‘We will provide an update in due course on further help for households across the UK to meet their energy costs in the face of rising global gas prices.’
