Report More Price Misery as British Gas Axe Cheapest Online Energy Deal

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Energy consumers have been hit by a new blow as British Gas have pulled the cheapest internet deal on the market. This move is evidence of upward pressure on gas and electricity prices, says

Photo by Graur Codrin

Gas Flame (Copyright: Graur Codrin)

Things are not getting any better in the energy market, so if customers want to fight back and save money they have to switch and switch now.

The largest member of the “Big Six” providers ended its £931 a year WebSaver 11+ One-Off Repairs* deal and replaced it with WebSaver 12 which is £24 more expensive at £955.

The new tariff is still the cheapest online energy deal available but the company has also introduced two new fixed price tariffs which are much more expensive than British Gas’ standard tariff and will cost around £1,250-£1,300 a year.

The moves came after the power giant’s parent company Centrica warned that prices might have to rise to cover increasing costs later this year.

The independent price comparison service warned that the increased tariffs were “significant evidence” of the upward pressure in the market.

Mark Todd, director of, said: “British Gas is clearly having to protect its margins with these new tariffs and highlighting the direct impact of wholesale increases on the residential market.

“Things are not getting any better in the energy market, so if customers want to fight back and save money they have to switch and switch now.”

The British Gas Fixed Price June 2012 offer which will run from July 1 is set at a 19% premium above the company’s March 2011 standard rates; and the Fixed Price March 2013 which will run from the same date are set at a 25% premium above the March rates. Both tariffs are being offered to existing customers coming off Price Promise June 2011.

Todd said: “The fixed price deals, in particular, are significant evidence of what might happen to standard energy prices this year. We have always thought that there could be a second round of increases in the autumn of up to 15% but these changes could point to rises of 20% or higher.

“That could put £230 a year on a typical household energy bill of £1,150 – and unfortunately that could just be the start of it.

“Turmoil in the Middle East and North Africa, the Japanese calamity, rising demand for oil and gas in India and China, worries of fuel scarcity and moves by the Government to introduce greener energy could all push prices up even higher.

“This is a gloomy outlook and consumers must start taking more control of their household energy budgets by shopping around for the best gas and electric deals – before it is too late.”

Note to editors:

  • The attached tariff includes a home emergency plan worth £3 a month as an added extra


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