Around 18 million households will see energy bills jump 14.2 percent this
month after the owner of the British Gas brand, Centrica, said soaring wholesale
costs had forced its hand.
The expected hike follows the recent decision by rival Powergen, owned by German utility E.ON, to increase gas and electricity bills 11.9 percent and 7.2 percent respectively for its five million customers.
French-owned utility EDF energy has also put up gas and power bills for millions of its users in and around London.
Centrica said the increase in energy prices came on the back of record highs in the cost of wholesale gas, driven in turn by soaring oil prices and declining North Sea gas reserves.
"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," British Gas's Managing Director Mark Clare said in a statement.
About 40 percent of Britain's power stations are gas-fired, so there has been an impact on electricity prices.
British Gas, which has 17.7 million customer accounts, said the increase takes effect from September 19.
Centrica, which last increased prices in September a year ago, by 9.4 percent for electricity customers and by 12.4 percent for gas users, said it would try help customers become more efficient in their energy use.
It will also offer a winter rebate of up to 60 pounds to help offset the
cost of the increase to vulnerable customers.
© Gigaware™ Ltd 2005