British Gas announces a hike in energy bills of 14.2%

September 10, 2005 One of Britain's largest domestic energy suppliers, British Gas, has announced that it is to raise the price of its gas and electricity prices by a record 14.2%. It blames the price rise on increasing wholesale gas prices, which have gone up by over 50% in the past year, the rising cost of oil & the increasing difficulty in getting gas from the North Sea, a major gas field for the United Kingdom.

250 000 people on low incomes will receive a one-off GBP 60 (USD 110.35, EUR 88.93) rebate to alleviate this price rise.

This follows increases from other suppliers including Powergen and EDF Energy, with both having risen their prices by 7 to 12%. Energywatch, Britain's consumer energy watchdog has said domestic gas and electric bills have gone up by 17 and 22% on average respectively in the last 18 months to August.

In 2004, British Gas increased its prices by 5.9% in January and 12.4% in September.

Across the water in Ireland, the Irish government approved a 25% increase on gas prices by the state owned monopoly, Bord Gais.