British Gas bills up 15%

British Gas today put up gas and electricity bills by 15 per cent.

The average annual bills for gas and electricity customers will go up by £143 to £1,055.

For customers paying by direct debit, the annual rise will be £131, taking annual bills to £968.

British Gas, the UK's biggest power provider, becomes the third supplier to increase prices this year.

EDF raised its rates for its 5.5 million customers by at least eight per cent this week and npower put up prices for four million households by up to 17 per cent a fortnight ago.

British Gas's rise comes in with immediate effect for about 13 million customers, although 2.4 million bill payers on fixed-term tariffs will see no increase.

The firm said it was also delaying the rise for 340,000 vulnerable customers until the end of the winter.

Age Concern community involvement manager, Tracey Pedley, said: "This price increase is deeply worrying for pensioners.

"When it comes down to it for many it is a choice between paying for food or keeping warm."

British Gas said wholesale energy costs rose sharply, with gas up 51 per cent and electricity 61 per cent.

Managing director Phil Bentley said: "As the UK's biggest buyer of gas, we want lower gas prices.

"However, lower availability of supplies from both the UK and the Continent, coupled with higher global oil prices, have forced up wholesale prices. We can't absorb the burden of these higher energy prices and the costs of delivering a cleaner environment."

The Unite union called for a windfall tax on energy firms and said rises would damage British industry and hit the vulnerable, old and poor. National officer Dougie Rooney said: "By any standards these recent increases are excessive."

By Rob Hess