British Gas has issued a warning to customers (Image: Getty)
British Gas has issued an unwelcome message to customers amid a £1,738 price rise.
The energy supplier has warned customers that anyone on a variable tariff will be stung for increased bills from January after increased its price cap by another 1.2 percent.
It means that anyone who isn’t currently locked into a fix will have to pay more for their gas and electricity from January 1, the second price rise in a row.
controls the price cap, which dictates the maximum energy firms can charge for a standard variable tariff.
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The cap only affects variable tariffs, so all energy firms, from to , , OVO and , are free to charge more than the cap – or less than the cap – for fixed deals.
The downside of a fixed tariff is that it locks you into that price for at least 12 months, so you need to hope that bills won’t reduce significantly during the time you’re fixed, or you will end up paying more than those on the standard. On the flipside, you can save a lot of money by fixing it before energy bills go up again.
British Gas said in a message to customers issued today: “On 22nd November, Ofgem announced that energy unit prices and standing charges will increase from 1st January 2025.
“If you’re on a variable tariff, this means you’ll pay more for your energy.”
It said that a £1,738 price is confirmed for January 1 for British Gas customers on a standard variable tariff. That represents a £21 increase, or 1.2 percent, which follows a £148, 10 percent increase in October.
But British Gas added that there’s no guarantee that bills won’t go up further in future.
It added: “The energy market has been more stable recently, but surprises can happen. Global politics play a big role in energy prices. For example, if conflicts in , or the Middle East worsen, wholesale gas prices could go up. This would eventually mean higher bills.”