The electricity company are raising prices by 12.5%, amidst worries the rise could lead to price hikes from competitor suppliers ahead of winter.

This price rise, which comes into effect on the 15th September, will effect a whopping 3.1million customers.

The company have left their gas prices unchanged, The Guardian have predicted that this means “the average annual fuel bill will rise by 7.3%.”

British Gas have stated that they will provide £76 credit to over 200,000 vulnerable customers to help them with the cost increase before winter.

A spokesperson for the Department for Business, Energy and Industrial Strategy said: “Energy firms should treat all their customers fairly and we’re concerned this price rise will hit many people already on poor-value tariffs”.

Iain Conn, the chief executive of Centrica (the company who owns British Gas), has defended the decision. He stated that the electricity rise was the first since November 2013 and reflected the 16% rise in the cost of energy and delivery to customers’ homes since 2014.

You can use Energy Helpline to compare prices from different electricity suppliers in the UK to find the best deal for you and your family. You can save up to £616 a year and switch suppliers in minutes!