British Gas hikes electricity prices by 12.5%

British Gas (Centrica) is increasing electricity prices by 12.5% in September in a move affecting over 3 million customers.

This move increases a dual fuel bill at British Gas £76 - even though wholesale prices have fallen since 2014. Centrica blames the increasing costs of energy policy, and delivery to customers’ homes since 2014 but naturally, the move has led to fierce criticism from consumer organisations with calls for more people to switch their energy supplier and commentators recalling May's pledge to cap energy bills ahead of the June 2017 election.

Context:

British Gas raising prices for the first time since November 2013

Prices rise over that time: RPI 8.8%, CPI 4.5%