British Gas hikes gas bills by 35%

British Gas today announced a 35% increase in the price of gas and a 9% increase in the price of electricity, the second of the 'Big 6' energy companies to announce massive price hikes.

BG said the price rises, which will take effect immediately, were down to ‘soaring wholesale energy prices’. Earlier this week rival EDF announced a 22% rise in gas and a 17% rise electricity bills.

Anticipating a likely backlash and moving to head off accusations of profiteering, British Gas was quick to point out that its residential profits for first half of 2008 down 69 per cent in the first six months of the year.

Wholesale gas prices for the coming winter were up 89 per cent on the previous year, it said.

It also promised not to raise standard rates again before the end of the year.

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

‘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.’

A committee of MPs warned earlier this week that consumers could expect gas and electricity bills to rise significantly in the near future, over and above the increases already announced this year, with serious consequences for millions of households, and especially the fuel poor.