12 September 2005
British Gas is to raise prices on its gas and electricity, the company has warned.
The company said that a "considerable risk and volatility in the wholesale energy markets" had forced it to raise prices by 14.2 per cent.
The price rises will take effect from September 19th, and follow similar hikes by Powergen (E.ON) and EDF.
However, wholesale energy prices were even higher, and British Gas emphasised that it was "not fully passing through these higher commodity costs in this price increase as it continues to try to mitigate the impact on customers."
Mark Clare, managing director at British Gas, said: "We are no longer an energy island - spiralling world oil prices are now having an unprecedented impact on the cost of gas as the UK is now dependent on imports.
"In these difficult times it is more important than ever that our customers take action to save energy and so reduce their bills."
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