British Gas makes largest ever energy price hike

31 July 2008

Move “provoked fury among its 16 million customers” says The Guardian

British Gas yesterday announced that it would be increasing its gas prices by 35% and its electricity prices by 9% after reporting a drop in profits of 69% in the first half of 2008.

The energy company also announced that its dual-fuel prices would be increasing by 25%, which means that its 16 million customers will end up paying an extra £261 per year for their gas and electricity. This takes the average British Gas dual fuel bill up to £1,305.

The move was blamed on the current increase in wholesale gas prices which have almost doubled from 48p to 90.8p per therm.

Phil Bentley, managing director at British Gas, said: “We very much regret that we have had to make this decision at a time when many household budgets are already under pressure.

“The simple fact, though, is that we have entered an era of unprecedented high world energy prices.

“The only answer to cope with higher energy prices, I’m afraid, is for all of us to be more energy efficient and we will be contacting all our British Gas customers to show how they can save energy to try and offset these price rises,” he added.

EDF Energy announced on Friday that it had decided to increase its gas prices by 22 per cent and its electricity prices by 17 per cent.

The other four big energy companies, Npower, E.On, Scottish Power and Scottish and Southern Energy, are expected to follow suit over coming weeks.

Click the link to compare gas and electric