British Fuel hikes payments for second time this yr, affecting three.5 million UK households

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British Fuel has introduced it’s mountain climbing the value of its normal variable tariff, blaming rising wholesale prices.

The choice means three.5 million UK households will obtain increased payments from 1 October onwards.

Centrica-owned British Fuel will elevate its SVT by three.eight per cent, which is able to take the typical invoice for a typical twin gasoline buyer to £1,205, which the corporate stated is “just under the typical of the SVTs for the bigger power suppliers” and represents a rise of £44.

Why are power payments rising and what can customers do about it?

This marks the second time British Fuel has raised costs because the starting of the yr, after rising its typical gasoline invoice by 5.5 per cent in April, a transfer that affected greater than four million UK households.

The supplier withdrew its SVT to all new prospects in March, and stated on Wednesday: “We actively need our prospects to decide on options to the SVT and we offer many alternatives for them to think about our fixed-term offers. We count on to have solely three million prospects on the SVT by the tip of the yr, down from four.three million at first of 2018.”

The newest hike from British Fuel follows the information that power market regulator Ofgem is elevating the cap on its safeguard tariff, additionally in response to rising wholesale costs.

Mark Hodges, chief govt at Centrica Shopper, stated: “We perceive that any worth improve provides additional stress on prospects’ family payments.  Nonetheless, this displays the sharp rise in wholesale power prices.

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“In response to quickly rising wholesale market prices, since April plenty of different power provide firms have elevated their SVT costs and Ofgem have additionally introduced a second improve to the prepayment meter cap.

“With greater than 70 power provide companies now working within the UK, the power market is more and more aggressive and we’re targeted on providing all our prospects engaging mounted and bundled offers.”

Final month, British Fuel revealed it misplaced 340,000 UK prospects within the first half of 2018, which consultants attributed to its invoice improve earlier within the yr.

In Could, Centrica stated it will lower 1,000 jobs this yr, with an extra three,000 to go by 2020, attributable to political and regulatory intervention.

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