Centrica plc the company which owns British Gas announced that electricity prices will rise by 12.5% from mid September 2017. “The 12.5% electricity price rise this September reflects the increasing costs of energy policy, and delivery to customers’ homes since 2014. In that time, overall electricity costs have increased by 16%.”
The news comes just six weeks after the government wrote to OFGEM reminding them of what was said in the Conservative manifesto and in the Queen’s Speech “My Government will ensure fairer markets for consumers. This will include bringing forward measures to help tackle unfair practices in the energy market to help reduce energy bills.” Read letter
British Gas is the last of the ‘big six’ energy firms to increase prices. Energy prices are already rising more quickly than the average salary, and many people are struggling to pay bills as it is.
Centrica say the increase reflects the increasing costs of energy policy and who is responsible for energy policy?
The outlook for electricity prices isn’t great and electricity prices will no doubt increase again with coal fired power stations closing and more expensive forms of generation replacing them.