British Gas increases prices

MILLIONS of British Gas customers will see energy bills rise by nearly 6% from January.

The move will add about 28p a week to the cost of electricity and 39p a week to the cost of gas, for the average household.

Bills will rise from 10 January for 12.5 million customers, while the increase will be delayed until 1 March for pre-payment customers.

British Gas, owned by Centrica, blamed 'cost pressures' for the forthcoming price increases.

Mark Clare, managing director of British Gas, said: 'Underlying wholesale energy costs have risen since the summer and continue to rise. Like other suppliers, we are being forced to reflect these increased costs in our prices.'

But the decision to raise rates has been slammed by the gas and electricity consumer watchdog Energywatch.

Allan Asher, chief executive of Energywatch, said: 'We are surprised and disappointed at this increase. There were significant reductions in wholesale energy prices over the past few years, but these were not passed on to consumers.

'It seems grossly unfair that consumers should now have to pay significantly more for their gas and electricity,' he added.

In November the trading price of gas rose to a record high, as energy firms scrambled for supplies following fears of possible gas shortages.

Consumers have also been warned by the industry to expect further price increases over coming months, as North Sea gas production is cut back.