British Gas lifts prices by 18%

8th Jul 2011 10:46

British Gas, which is owned by the FTSE 100 firm Centrica, will increase domestic gas and electricity prices by an average of 18% and 16% respectively from 18 August.The move had been expected following Scottish Power's announcement in June that it will increase gas prices by 19% and electricity prices by 10%. The other four of the "big-six" energy suppliers are expected to announce similar moves."British Gas recognises the difficulties customers are facing in the current economic climate, but today's announcement follows steep rises in wholesale costs, which have increased 30% since last winter because of higher global demand for gas, driven by increased consumption in Asia and the impact on supply of unrest in the Middle East and North Africa," Centrica said."Britain now imports almost 50% of the gas it needs from other countries around the world, and British Gas has to pay the market rate in the global wholesale energy market."---RG