British Gas Price Increases

British Gas customers will face a 7% rise in gas and electricity bills this winter, the company has announced.

The increase, which comes into effect on 10 December, was the result of rising wholesale prices, it said.

The rise affects eight million customers, but the company added that its 300,000 most vulnerable customers would initially not be charged more.

British Gas has become the second major UK energy supplier to announce price increases for the winter months.

It said that wholesale gas prices had risen by 25% since the spring.

"We know that rising energy prices come at a difficult time for many," said British Gas managing director Phil Bentley.

The company said prices for those on a typical dual-fuel deal would go up by £1.50 a week.

Vulnerable customers on the "Essentials" package with British Gas will have prices held until 1 April 2011.

Full details can be found at the BBC website. http://www.bbc.co.uk/news/business-11741766

It is likely that the other 'Big 6'and the smaller suppliers will take this opportunity to increase energy costs for their customers. Southern Electric (SSE) have already increased their gas prices, although EDF have announced that they do not intend to raise prices before the winter ends.

Phoenix Energy recommend that domestic customers sign up for a fixed price deal at our comparison site before the prices of the best fixed tariffs raise again.

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