People on a British Gas tariff which sources power from renewable sources will have an 11% leap in their electricity bills, the company said on Friday.
The increase in the sustainable energy tariff, which is almost double the rise in British Gas's dual fuel prices announced today, is due to the higher costs of generating electricity from renewables, the firm said. The increase will affect about 4,000 customers.
The sustainable energy tariff matches every unit of electricity a customer uses with a unit of 100% British renewable energy. Even with subsidies for technology such as onshore and offshore wind, which add about £20 on average to all energy bills, British Gas said it was more expensive to get electricity from UK renewables.
In order to make tariffs "simple and fair" for all customers, the cost of using renewable electricity is being reflected in the price for consumers who choose the green tariff, ensuring the costs will not be borne by other households.