Gas customers hit by £100 bill rises in winter

Millions of British Gas customers were today warned that energy bills could rise by as much as £100 next winter.

The country’s biggest gas and electricity supplier said it was being squeezed by 15 per cent higher wholesale gas prices and other costs that meant the trend for household bills “remains upwards”.

The warning came on the day that the boss of the company’s owner, Centrica, came under fire from shareholders for his £4 million pay package, which includes a £684 discount on his energy bills.

Experts said there was little prospect of an immediate rise in tariffs but said British Gas was clearly preparing the ground for increases in the autumn.

In its statement today Centrica said “non-commodity costs”, which includes transporting gas around the country as well as meeting “green” obligations imposed by the Government, would add around £50 to the average cost of supplying a household.

On top of that, 15 per cent higher wholesale prices for next winter compared with last winter could mean a further £50 cost burden, say experts. It will be up to British Gas to decide how much it passes on to households.

Mark Todd, director at Energyhelpline.com, said: “This is the starkest warning yet that consumers will be faced with some hefty bill increases later this year. British Gas is the biggest energy supplier in the UK, supplying gas to almost 10 million households, so this should be taken very seriously. From what we are hearing, other suppliers are feeling similar pressures.”

Consumer groups urged the company to shoulder as much of the costs itself as it can afford. Jo Ganly, energy expert at comparison website u.Switch, said: “Clearly it’s worrying against a backdrop that consumers are still struggling with the £224, or 21 per cent, increase in bills from the end of 2010.

Since then they have only enjoyed a £41 or 3.2 per cent reduction at the beginning of this year. Any more increases will see people seriously struggling to afford their bills.” Average dual fuel household energy bills currently stand at about the £1,250 mark.

All the major suppliers, including British Gas, implemented small cuts in tariffs this year following unprecedented public and political pressure over “rip-off” prices.