Fury as British Gas announces huge price rise

The energy giant staged a question and answer session on Twitter with its customer services director yesterday, after announcing that 7.8 million households face a 10.4 per cent rise in electricity prices and an 8.4 per cent increase in gas tariffs from next month.

It is the second of the “big six” providers to announce price increases this month after SSE revealed more than seven million customers will be hit with an 8.2 per cent rise from November 15.

The move sees British Gas tear up a pledge made earlier this year to use an annual earnings windfall from the cold weather to keep a lid on tariffs.

Hundreds of customers took to its site to vent their anger. The company also faced criticism in the House of Commons as Energy Secretary Ed Davey warned British Gas would need to explain its decision to customers.

British Gas insisted it had not taken the decision to increase prices lightly, adding the Government’s “social and environmental programmes” were partly responsible for the rise in energy costs.

The Q&A session was dubbed a “social media car crash” as customer services director Bert Pijls was put under pressure on Twitter. One Twitter user posted a picture of an old woman wrapped in blankets huddled next to a heater, writing: “Do images like this help you sleep at night, Bertie?”

Another said: “Hey BritishGas how many vulnerable people do you think you will push into fuel poverty whilst continuing to make billions in profit?” while Cal Loftus wrote: “Do the BritishGas board prefer to bathe in £20 or £50 notes?”

Others worried about not being able to pay their bills. One said: “24,000 people died cos [sic] of cold homes last year, how many do you think will die this year with price increases so huge?”

Another added: “How will you feel when pensioners die from choosing to eat instead of heat?”

Mr Pijls responded: “No customer should have to make that choice. If someone you know is struggling to pay their bills please call 0800 980 1917.”

He also reiterated comments from Ian Peters, his managing director, that the decision was not taken lightly. He tweeted that the three main reasons were: “1. Wholesale price rises 2. Improvements needed to pipes & wires 3. Cost of govt (sic) programmes.”

According to Ofgem usage figures, British Gas dual-fuel customers will see their average annual bill rise by £123 to £1,444 after the price increases, which take effect on November 23.

But regional variations mean some customers will see their bills top £1,500 a year, with average prices rising by as much as 11.2 per cent for some Scottish customers, while households in Yorkshire will have a 10.5 per cent hike.

British Gas also said it was introducing a new fixed standard charge of 26p a day – which will have an impact on another 6.1 million customers – and a single variable unit rate, depending on usage and tariff.

Mr Davey told MPs consumers should look to competitors. “There are a range of competitors and alternative suppliers that are offering a much better deal. And by the way, those suppliers are there because of the actions of this Government.”

Earlier Labour MP Andy McDonald said: “Given the announcement from British Gas, wouldn’t you be better advised, instead of just expressing disappointment and urging transparency, to actually send a message out that there comes a point when these companies are jacking up prices that you will intervene?”