British Gas customers face 15% increase in electricity and gas prices

The country's biggest energy firm rushed through the inflationbusting price increases yesterday with immediate effect.

The massive price jump means the giant has reclaimed its title as Britain's most expensive gas provider.

Over the last five years, British Gas has increased its prices seven times. A typical family must now pay £653 a year for their gas, a 76 per cent jump since 2003.

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For hard-pressed families, fuel bills have become one of the biggest and most dreaded household expenses.

The timing is particularly harsh as most families use about 40 per cent of their annual gas consumption between January and March.

British Gas, which has also increased its electricity prices by between 12 and 19 per cent depending on area, blamed rising wholesale prices, transport and distribution costs and new green initiatives.

But Allan Asher, chief executive of the consumer group Energywatch, said he had lost patience with such excuses.

He said: "Like every other consumer, I am sick and tired of hearing energy companies try to justify the latest bout of pain they are inflicting on us.

"This increase piles on even more agony for consumers who are facing a salvo of mid--winter double- digit energy price rises."

The company's latest price increase has almost wiped out the two price cuts last year, and has also been introduced more quickly than ever before.

The first price cut last year, for example, was announced nearly five weeks before bills actually came down. By contrast, yesterday British Gas's 15.8million customers were not given a single day's notice.

The increase will force them to spend about £1billion extra on fuel bills this year, according to the comparison website TheEnergyShop.com.

Gordon Lishman, director general of the charity Age Concern, said: "We're disappointed despite their very healthy profits, the big energy firms don't think they can afford to put off these increases until after the winter quarter.

"This is when the poorest pensioners worry most about their bills.

"Concern about these price rises may cause older people to cut back on their heating, which could put their health at risk."

British Gas Residential made operating profits of £533million in the first six months of last year, according to its latest figures.

Around 340,000 "vulnerable" customers on the company's "Essentials" tariff will not see bills rise until the end of winter.

British Gas is the third energy giant to raise its prices since 1 January. EDF Energy and Npower have already introduced swingeing price hikes.

However rival Scottish and Southern Energy promised yesterday not to raise prices before the end of March.

The two remaining energy giants which have not increased prices this year - Powergen and Scottish Power - said they are monitoring the market.

Experts advised any customer wanting to switch from British Gas to wait for all the 'big six' to reveal their plans before comparing prices.

Earlier this week energy suppliers were attacked for scooping a £9billion windfall at the same time as driving fuel bills to record highs.

The windfall comes from a complicated EU initiative called the Emissions Trading Scheme, designed to reduce pollution.

The electricity generators have been given "permits" to emit climate-warming gases.

Despite not paying for the permits, they have raised the price of wholesale electricity to reflect their supposed cost.