British Gas lifts prices by 7%

12th Nov 2010 09:35

British Gas will raise householders' gas and electricity bills by an average of 7% from 10 December, the utility group's owner Centrica has announced.The price change will amount to a weekly increase of £1.50 on the average bill and will affect about 8m customers on British Gas's standard and variable tariffs.'The price rise will not be applied to the company's 300,000 most vulnerable customers until the winter is over,' Centrica said. 'Furthermore, 1.6m customers on fixed price deals will not be affected in any way.'Centrica said British Gas was raising prices in response to rising wholesale gas prices, which are up by 25% since the spring. That was the reason given by Centrica's peer Scottish and Southern Energy, which late last month put its gas tariffs up by 9.4%, prompting speculation that the other 'big six' suppliers would also lift prices.British Gas managing director Phil Bentley said prices would not be lifted for vulnerable customers such as the poorest pensioners - until after winter.'We will continue to give them extra help - including lower rates - saving each an average of £128 a year,' he said.