British Gas elevating power costs by 5.5 p.c

LONDON (Reuters) – British Gas will elevate the value of its most generally used customary tariff for purchasers getting electrical energy and fuel by a mean of 5.5 p.c from May 29, mum or dad Centrica (CNA.L) stated on Tuesday.

FILE PHOTO: A British Gas van is seen parked outdoors a home in Loughborough, central England October 17, 2013. REUTERS/Darren Staples/File Photo

Increases to electrical energy and fuel prices will add 60 kilos ($85) to annual payments for four.1 million prospects on the usual variable tariff (SVT), elevating them to a mean of 1,161 kilos, the company stated.

British Gas withdrew its SVT default tariff for brand spanking new prospects on March 31 and is working to maneuver prospects off SVTs and on to fastened tariffs. The company is not going to supply SVTs to new prospects.

“This increase is largely due to rising wholesale and policy costs. Similar pressures were cited by Ofgem when they increased the prepayment meter cap by just over 57 pounds on 1st April,” Centrica stated in a press release.

In February, power market regulator Ofgem stated British power prospects coated by a cap for probably the most weak households, sometimes on prepayment meters, would see payments improve by a mean of 57 kilos a yr from April 1.

Britain’s government is placing a wider value cap on customary variable tariffs to fight what it has referred to as “rip off” power costs.

“We are disappointed by British Gas’s announcement of an unjustified price rise in its default tariff when customers are already paying more than they need to,” Energy Minister Claire Perry stated in an emailed assertion.

Centrica stated the value rise was partly wanted on account of government coverage prices such because the sensible meter roll-out and schemes to scale back carbon dioxide emissions.

“This increase we are announcing today is reflective of the costs we are seeing which are beyond our control,” Mark Hodges, Chief Executive of Centrica’s Consumer business stated.

Centrica stated the funding of all government coverage prices ought to be paid for in a fairer means reminiscent of by means of normal taxation fairly than added to individuals’s payments.

($1 = zero.7064 kilos)

Reporting by Nina Chestney; further reporting by Susanna Twidale, enhancing by Jason Neely and David Evans

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