Big switch-off at British Gas

BRITISH Gas is 'haemorrhaging' customers after announcing inflation-busting rises in energy bills, experts said yesterday. There was a surge in enquiries to other companies and to price advice services by consumers planning to ditch the nation's biggest power supplier.

Households were urged to shop around - but first wait about six weeks to see what other companies do with their prices.

British Gas was accused of 'betraying' millions of households after announcing on Tuesday it was increasing gas bills by 12.4% and electricity bills by 9.4%.

The company warned that the era of cheap energy was over.

Millions of customers face an inflation-busting rise in their bills - with some increasing by almost £100 a year - from 20 September.

Energyhelpline.com - a price comparison service - predicted last night that British Gas would lose 1.5m customers over the next 12 months. It said it had seen a 300% surge in enquiries from customers desperate to leave British Gas.

Director Mark Todd said: 'Clearly enough is enough. For far too long British Gas has used its near-monopolistic position to rip people off.

'People have remained with BG all these years out of loyalty to what they perceive as a trusted supplier. Now their trust has been betrayed.'

Another price comparison service, uSwitch, showed how consumers would be better off with other suppliers.

It found a family of four with gas and electricity from British Gas will be £123 a year worse off than if they were with the cheapest dual fuel provider - Scottish Power. A dual fuel household using the average amounts of power could be £85 better off.

Company prices tend to vary from region to region and shoppers are advised to investigate further, it said. Tim Wolfenden, product manager at uSwitch.com, said: 'British Gas customers really are getting a raw deal. It's a double blow for customers. These hikes are from a supplier that is already one of the most expensive suppliers of gas in the marketplace.'

A spokesman for consumer group energywatch said: 'British Gas was already the most expensive major supplier of gas. This rise puts them out of everyone else's league. If you are still with British Gas, it's time to go.'

Changing suppliers should be a simple process and can be done over the phone or online.

A customer can ask for quotes from rival companies, which will depend on the size of their property and what the gas is used for. Once they have selected a new supplier, the handover will take around six weeks.

British Gas blamed wholesale rises in the price of energy and warned that other companies will follow suit. A spokesman said: 'By the time everyone else has increased their prices, as they will have to do, British Gas will look much more competitive.'

It warned customers who did switch could face quick rises from their new provider.

Energywatch has called for an investigation into the wholesale market where prices are due to rise 50% from 2003 by 2005.

Yesterday, Ofgen confirmed it had fined Powergen £700,000 for stopping consumers switching to cheaper gas or electricity suppliers. The company was found to have unfairly prevented 20,000 customers from moving.

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