An unprecedented 35 percent bill increase for gas has been imposed by Britain's biggest energy provider.
The UK's biggest energy provider has imposed sharp bill increases for its gas and electricity tariffs.
British Gas said yesterday that electricity prices are to increase by nine percent, while gas will go up by 35 percent - a figure which, according to Energywatch, is the firm's biggest hike on record. The price rises have been imposed with immediate effect.
An extra £261 per year will therefore now be paid by the average British Gas customer, bringing the annual household energy bill to over £1,300.
"Soaring" wholesale energy prices were blamed by the firm for the hikes, despite recent retreats in the price of crude oil and natural gas. The move also follows rival provider EDF's decision to increase gas and electricity costs by 22 and 17 percent last week.
Moreover, other firms are expected to follow suit with increases of their own over the next few days.
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 energy provider has also indicated that prices would not increase further in 2008. It currently retains over 15 million gas and electricity customers in the UK.
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