Thousands of customers quit utility
British Gas lifts electricity prices despite exodus
British Gas is raising electricity prices by 12.5% from next month despite seeing an exodus of customers.
The company’s owner Centrica has lost 485,000 customers since May and reported a 4% year-on-year fall in adjusted operating profit to £816 million.
Centrica’s latest customer losses follow 261,000 who left between January and May, bringing total customer losses this year to 746,000 as smaller rivals gain market share.
The increase in electricity prices means the average annual dual fuel bill for a typical household will rise by £76. The change comes into effect on 15 September Gas prices will be left unchanged.
Centrica, which trades in Scotland as Scottish Gas, said this was the first standard tariff increase for four years and is due to rising delivery and environmental costs since 2014.
Earlier this month, the UK energy regulator Ofgem said it would cap bills for some of the most vulnerable customers and both the Conservatives and Labour promised caps during the General Election campaign.