Gas bills to soar by 30 per cent in weeks as energy prices increase

British Gas is preparing to increase annual bills by about £200 next month.

With the average household gas bill now standing at £600 a year, the move would see the charges for its 16million customers rise by around 30 per cent to £800 annually.

Senior sources at Centrica, the parent company of British Gas, claim that prices must rise because the cost of wholesale gas has doubled.

Without the jump, the company warns, it will plunge heavily into debt.

It is understood that Centrica is planning to hit customers with one large increase rather than phase it in over the next 12 months.

A board meeting will be held shortly to rubber-stamp that decision. If the price hike goes ahead, Britain’s five other energy companies are expected to follow suit.

Some, such as Scottish and Southern Energy and Scottish Power, are under pressure to raise prices because many of their power stations are fuelled by coal, whose cost has doubled over the past two years.

The news comes just days after families were warned that gas bills are likely to top £1,000 by 2010.

Jake Ulrich, managing director of Centrica Energy, infuriated customers last week by telling them that they should ‘wear two jumpers’ to save on heating.

Ulrich, who earns £1million a year, was criticised by consumer group Energywatch,
which called his comments a ‘slap in the face’ for customers.

A Centrica spokesman said: ‘This story is untrue.’