British Gas has sounded the alarm for its customers, warning of a significant spike in energy bills come October as households grapple with soaring living costs. The impending price hike arrives just as winter looms and the festive season nears, potentially piling on additional financial pressure for numerous UK families.
Energy bills are poised to soar by an average of £149 from October, but British Gas is extending an olive branch to its customers, offering them the opportunity to lock in their current rates and avoid the upcoming increase, as reported by Birmingham Live.
In response to Ofgem’s latest announcement, British Gas has issued a crucial advisory on its website, stating: “Ofgem will increase the energy price cap by £149 in October. Secure a fixed tariff now that’s below the cap.”
“And, if we offer a cheaper deal in the future, you can switch for free.”
With the prospect of escalating energy costs on the horizon, other leading suppliers are expected to follow suit with similar fixed-deal propositions. However, financial gurus urge consumers to scrutinise these offers meticulously to ensure they’re compatible with their household budgets.
Fixed tariffs promise a consistent rate for a set duration, yet there’s always the gamble that users may ultimately pay more should average prices waver. The Energy Price Cap is reviewed quarterly, causing bills to fluctuate accordingly.
This most recent cap adjustment is likely to exacerbate the dismay for many, following a fleeting period of relief in July when energy charges had momentarily dipped.
Following the announcement of the new energy price cap in October, Ofgem’s chief executive, Jonathan Brearley, expressed his concern: “We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”
Echoing British Gas’ advice, Mr Brearely urged customers to “shop around” and consider opting for a fixed-rate tariff.
Meanwhile, Secretary of State for Energy Security and Net Zero, Ed Miliband, voiced his concerns: “This will be deeply worrying news for many families. The rise in the price cap is a direct result of the failed energy policy we inherited, which has left our country at the mercy of international gas markets controlled by dictators.
“The only solution to get bills down and greater energy independence is the government’s mission for clean, homegrown power. That’s why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power and setting the largest-ever budget for our renewables auction. We will also do everything in our power to protect billpayers, including by reforming the regulator to make it a strong consumer champion, working to make standing charges fairer, and a proper Warm Homes Plan to save families money.”
