Energy supplier's price increases 'audacious'

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A leading energy supplier's decision to increase the cost of its gas and electricity has been described as "audacious" by a Scottish MP.

Mike Weir, the energy spokesman of the Scottish National Party, said that British Gas's move to introduce price rises had created "justifiable anger" after its parent company Centrica announced major pre-tax profits for the last six months.

In an article for the Sunday Telegraph, he stated that the introduction of a windfall tax would be one "possible solution" to the issue.

He wrote: "The First Minister Alex Salmond has today called for Gordon Brown to impose such a tax to help hard-pressed families and pensioners combat fuel poverty.

"It isn't right that energy companies are returning huge profits and dividends to their share holders while families are struggling to pay bills and small businesses are going bust."

In recent weeks, British Gas rival EDF Energy also announced plans to increase the cost of its gas and electricity.

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