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British Gas to raise electricity prices from September 2017

British gas car

Electricity is going up in Great Britain

British Gas have recently announced a price hike in their standard variable tariff by 12.5%, which as by no surprise, has angered their many loyal customers.

More than 3 million homes will be affected by this rise in electricity, only weeks after the government vowed to cap rising energy bills.

The rise of the tariff is at almost £100 extra added to your bill.

The supplier is also planning to scrap the discount for the combined gas and electric bill this year, which will now rise to £76, previously that was going to save the customer £15.

Iain Conn, Chief Executive of Centrica, the company that owns British Gas, has said “It is transmission and distribution of electricity to the home and government policy costs that are driving our price increase”.

£53 of the £98 has gone towards renewable obligation certificates

Centrica has also gone on to say that “The price rise reflects increasing delivery and environmental and social policy costs since 2014, and also the growing costs related to the UK smart meter rollout”.

So far, British Gas have installed 4 million smart meters in British households.The cost of installing a dual-fuel meter is £107 or £67 for one.

What they didn’t seem to let their customers know, was how much of the increase went towards renewable energy.

£53 of the £98 increase has gone towards renewable obligation certificates (ROCs).

These are certificates that every company purchases to meet their responsibilities for generating energy from renewable sources.

British Gas have said that they didn’t see an increase in their wholesale energy cost, they had actually seen their cost fall by £36, but other costs had risen £98 per customer.

In December 2016, British gas froze their prices until April 2017.

They then extended their freeze in February to August. Since then, the average price of a standard variable rate has fallen 15%. Their standard tariff is £286 more than the cheapest deal on the market.

British gas price comparison against other suppliers

British gas is already expensive compared to its competitors, now it will be by even more after the price rising on 15th September.

Ofgem, the electricity and gas regulator has said in their latest supplier cost index, that providing dual fuel for energy suppliers has risen by 15%, not something British gas have mentioned in their reason to raise prices. Ofgem also estimate that the cost of getting the energy to your house is the most expensive part of your bill.

Moving gas and electricity around the country is known as transmission and the final part of the journey, actually getting it to your home, is called distribution.

The whole process equates to a quarter of your annual energy bill. Since 2014, transmission has become more expensive, while distribution has become cheaper. The difference between the two is £9 per customer bill.

The rise in price could see other rival suppliers start a new round of price changes this winter. There couldn't be a better time to switch provider and save some money before the more expensive months come back around.


This article was written by Benjamin. From Portsmouth, but having spent 7 years in Switzerland, he joined Selectra in August 2017 and is responsible for writing expert content about the UK gas and electricity markets.