Energy News

British Gas puts up energy prices

By Kelvin Goodson - news@consumerchoices.co.uk

Nation's leading energy supplier blames rises in wholesale costs.

British Gas has announced that it is to raise its gas prices by an average of 18% and its electricity prices by 16% from 18 August this year.

The energy supplier said that the price rises follow a 30% increase in wholesale prices since the winter due to increased use in Asia and the impact of unrest in the Middle East and North Africa.

It added that, while it is sympathetic to the struggles customers will face given the current state of the UK economy, with Britain now importing almost 50% of the gas it needs, British Gas has to pay the going global wholesale price.

Phil Bentley, managing director of British Gas, said: "We know there is never a good time to raise prices, but we are buying in a global energy market and have to pay the market rate.”

Bentley went onto say that these issues are facing all energy companies, so that British Gas customers should “wait and see what happens in the energy retail market as a whole before making any decisions about switching supplier”.

He added that British Gas customers should contact the company for tips on how to keep their energy bills “under control” while holding fire on finding another supplier.

British Gas is also offering its clients three ways to make up for the prices - free loft and wall cavity insulation, its online service EnergySmart that comes with a free energy monitor and flexible payment terms.

Gas and electricity supplier Scottish Power announced a second price rise in nine months in June, increasing the cost of gas by 19% and the cost of electricity by 10%. The price rise hit 2.4 million customers and raised the average duel fuel bill by £187 to £1,398 a year.