British Gas’s owner has warned that the wholesale energy price spikes that have caused more than a dozen suppliers to collapse will add GBP100 to UK energy bills.
Questioned in the House of Lords, Chris O’Shea, chief executive of British Gas owner Centrica PLC said the increase would apply to “every single home in the UK”.
“Whether that is a house in Belgravia or a studio flat in a deprived area of Glasgow, it will be the same amount – and that is the same with the policy costs at the moment.”
A total of 14 energy suppliers have gone bust since the start of August, resulting in 2mln customers being switched to larger, more financially secure suppliers.
Another 4mln customers are classed as “vulnerable,” said O’Shea.
He added that the cost of transferring customers to other suppliers would drive prices higher, on top of the already sharp commodity price increases.
“If we put these costs on bills at a flat rate then that will not achieve a just transition.
“It will ensure that people are left behind because it hits the poorest in society hardest, and that concerns me,” he added
He also said the cost of cutting emissions should not be added to bills, as that is a “regressive” tax.
O’Shea added: “The cost of net-zero is not small.
“To put that onto consumers will exacerbate a potential cost of living crisis.”