An exceptional charge of £268mln was recognised in the first half for shedding oil and gas assets to focus on its core energy supply and services. Three million Brits are going to pay 76 pounds a year more than they are now when you have acknowledged that there is no increase in the wholesale price of electricity.
"When the reporters challenged British Gas' decision to increase electricity costs, Hodges said competition in the gas market is good" and that their customers "have a choice" to select alternative suppliers.
The move affects around 3.1 million British Gas customers on the "standard tariff", the default rolling contract option.
Energy giant British Gas says it will increase electricity prices by 12 and a half per cent on September 15th.
"The British Gas standard tariff remains the cheapest among the big six but it is still £286 more expensive that the cheapest deal on the market today".
Details of the increase comes as Centrica revealed its earnings plunged by more than a quarter after it lost 377,000 United Kingdom customer accounts in the first half.
The Energy Department spokeswoman added: "We want to see rapid progress on this commitment".
Claire Osborne at USwitch said: "At a time when living costs are rising faster than wages, this hike could push many families into the red".
Iain Conn, chief executive of Centrica, told the BBC's Today Programme that the price rise announcement was due to government imposed policy costs.
Expectations of a price rise were fuelled by a website blunder by British Gas staff yesterday.
The Government's promise of a price cap for all households on standard variable rate tariffs appears to have been watered down in recent months.
The British government has expressed concern about British Gas's plan to increase electricity prices, arguing that it would hurt low-income people who fail to shop around for the best price.
It was titled "Why we've had to raise electricity prices - our first increase since November 2013.' However, the body of the text read only 'blah blah", suggesting the upload was an error.
Details of the increase comes as British Gas owner Centrica posted half-year results revealing that earnings from its consumer business plunged by more than a quarter after it lost 377,000 United Kingdom customer accounts in the first half.
Martin Lewis, the founder of MoneySavingExpert, warned that the significant price hike might usher in a new round of utility price rises across the board, which will spell disaster for those already struggling to pay the bills. And if you're on the fence about whether to find a new provider after the British Gas news, his advice is unequivocal.