British Gas has hiked the cost of its cheapest energy tariff by over 18%, adding £140 to the average customer’s bill.
Click Energy 4 had been the cheapest online deal available on the market, but it now plummets to 4th on the list, while similar hikes last month have left it languishing in third place for standard tariffs.
The move comes just days after the company was flagged up as one of the nation’s worst for customer service in a report by Citizens Advice Bureau.
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If only prices were as low as customer service
According to the report, a massive 81% of customers who contacted their gas supplier said they were either “dissatisfied or very dissatisfied” with the way their last call had been handled.
And British Gas customers were the most likely to suffer, accounting for nearly three quarters (71%) of these calls, despite the fact the company accounts for less than half (46%) the market.
Citizens Advice Bureau CEO David Harker added: "I would simply like to ask the chief executives of all the utility supply companies - especially British Gas and British Telecom - if they could investigate the issues in our report and make improvements.”
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Many customers lured in
Many British Gas customers had been willing to put up with the poor service because the supplier’s Click Energy 4 tariff was the cheapest around.
Certainly the company had carried out an aggressive marketing campaign that ensured everyone knew how competitive the deal was. By delaying the increase until after most other competitors had done so, the company has no doubt attracted a massive number of new customers to the tariff.
Now that it has snared them, it has quietly hiked rates by 18.6% - notably higher than the average 15% increase seen on all other tariffs (including its own ‘standard’ deal).
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Customers hit by double whammy
The move means many customers are not only languishing on one of the most expensive online tariffs around, but are having to suffer the poorest customer service levels along with it.
The good news is there’s no cancellation fee or tie-ins with either Click Energy 4 or 5, so you can switch away without incurring a penalty.
British Gas’ marketing team may have cleverly lured you in, but you get to have the last laugh by switching to a cheaper provider. As the table below shows, E.On’s online tariff is over £110 cheaper.
Make sure you compare energy suppliers in your area, though, as prices differ depending on where you live.
| Supplier | Standard Plan (paying on receipt of bill) | Online Plan (paying by monthly direct debit) |
| British Gas | £1,055 | £880 |
| SSE* | £875 | £777 |
| npower | £1,056 | £901 |
| E.ON | £1,063 | £769 |
| ScottishPower | £1,100 | £886 |
| EDF Energy | £1,007 | £819 |
| Average | £1,026 | £839 |
Based on a medium user consuming 3,300 kWh of electricity and 20,500 kWh of gas, with bill sizes averaged across all regions.
*SSE yet to announce its price hike (likely due on March 30)
