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BRITISH GAS PRICE HIKE HITS ISLAND

Posted by Peter On December - 7 - 2010 at 1:30 pm

HUNDREDS of Islanders can brace themselves for a Christmas message from British Gas they would prefer not to receive.

The gas giants have blown out a load of more than just hot air by starting to notify its customers, many of them living on the Island, that it will raise domestic tariffs for both gas and electricity by an average of 7 per cent on December 10.

The British Gas increase comes close on the heels of Scottish and Southern Energy announcing their prices are to rise by 10 per cent, again affecting hundreds of Islanders.

The British Gas price change, which will amount to an increase of £1.50 on the average weekly dual fuel bill, will affect around 8 million customers on British Gas’ standard and variable tariffs. So it’s another blow to Island residents who are struggling to come to terms with price hikes amid economic gloom.

If there is any good news it is the fact the price rise will not be applied to the company’s 300,000 most vulnerable customers until the winter is over. Further-more, 1.6 million customers on fixed price deals will not be affected in any way.

British Gas Managing Director, Phil Bentley, said: “We know that rising energy prices come at a difficult time for many in Britain. That’s why we are not raising prices for our vulnerable customers, such as the poorest pensioners, until after this winter. We will continue to give them extra help - including lower rates - saving each an average of £128 per year.

“But higher prices needn’t mean higher bills with the free energy efficiency help available from British Gas. This year alone, we’ve fitted more than 120,000 energy efficient boilers and carried out more than 270,000 loft and cavity wall installations in our customers’ homes. We’re offering free cavity wall insulation to our customers who are 60 years or over, which could save them up to £110 each year.”

Commenting on the increase, Steve Bloomfield, UNISON national officer for energy, said: “British Gas is the second of the six major energy companies to announce bill hikes, and it’s only a matter of time before the rest follow suit.

“Although there is some protection for low-income households, millions of other families will have to think twice before turning the heating up this winter, in fear of the heavy bill that will drop through their letterbox.

“The British energy market needs an urgent, comprehensive review and overhaul to make sure it is acting in the interest of consumers. It cannot be right that companies like Centrica, British Gas’s parent company, can make huge profits by selling and producing gas, without passing savings onto British Gas customers.”

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