British Gas announces 35% price hike

Updated 22.29 Wed Jul 30 2008

Keywords: oil prices, gas, electricity, British Gas, price rise

British Gas is hiking gas prices by 35 per cent and electricity prices by 9 per cent.

The price hikes come into effect immediately and will add an extra £262.80 a year to the average dual fuel customer's bill.

"The simple fact though is that we have entered an era of unprecedented high world energy prices" - Phil Bentley

British Gas managing director Phil Bentley 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 company blamed increasing global demand, diminishing UK gas reserves and record oil prices for the decision.

But it said standard rate customers will not be hit with any further price rises this year and 2.1 million fixed-rate customers will not pay any extra.

Rival energy supplier EDF increased its electricity prices by 17 per cent and gas prices by 22 per cent last week.