British Gas set to implement energy price rise

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One of the big six energy suppliers is reportedly set to implement a price increase.

The London Evening Standard has reported that British Gas is preparing to hike its electricity and gas prices. Both of these rises could come into effect by November.

It is expected to attribute the price increase to the rising costs of energy at wholesale, as well as a rise in other costs. However, the move is likely to anger many of British Gas' estimated 16 million customers. A number of consumer groups have argued that the huge profits registered by the company could allow it to put off increasing its energy prices for a while longer.

The average amount currently paid per year by a British Gas customer for a dual fuel bill is about £1,260; an increase of eight per cent, for example, would see £100 added to a bill.

British Gas - one of a number of energy suppliers partaking in the Warm Home Discount Scheme - previously revealed in May (2012) that it would have to implement a price hike at some point, despite its parent company, Centrica, reporting higher profits.

Centrica reported that its profits for the first-half of the year had gone up by 15 per cent - reaching £1.45 billion.

Commenting on a possible rise, Caroline Flint, shadow energy secretary, stated: "People will not understand why British Gas are putting up prices after their interim financial report showed profits on UK residential customers up 23 per cent compared with the same period last year."

British Gas isn't the first energy supplier to increase its prices for the winter months. SSE announced that its energy prices would be going up back in August.

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