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Home >> Business
UPDATED: 10:33, February 19, 2006
British gas, electricity bills to soar to 1,000 pounds this year
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An energy bill of 1,000 pounds a year could soon be the norm for an average family in Britain, after the British Gas Corporation announced on Friday that it is to further raise its gas and electricity prices by 8.6 percent, The Daily Telegraph reported on Saturday.

The increase, which will come into force on March 1, was announced just five months after the company, the country's biggest gas supplier, raised its gas and oil prices by 14 percent.

It will bring the average British Gas bill for gas to 628 pounds a year, while electricity will cost 391 pounds.

Energywatch, the consumer watchdog, said that it was "the bleakest day yet" for consumers. It warned that by next Winter, 3 million consumers could fall into the fuel poverty bracket -- which means they will spend more than 10 percent of their income heating their homes.

British Gas, which is said to be the most expensive gas supplier in the UK, has 16.9 million customers. It explained that the main reason for the price hike is "the North Sea gas production is falling since 2004."

The electricity price hike is due to the fact that 40 percent of the electricity in the country is generated in gas-powered power stations.

The company claimed yesterday that British customers were still enjoying some of the cheapest energy among EU countries, saying that it would also provide 90-pound rebates to 300,000 vulnerable consumers.

It is estimated that the British Gas price rise could cost customers 2.7 billion pounds a year.

Source: Xinhua


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