Gas bills to soar by £228

It is the second time that British Gas has  raised prices in less than seven months. [>

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Critics condemned the move for coming at a time when millions of households are already struggling to cope with spiralling fuel bills. [>

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British Gas justified the rises by blaming soaring wholesale costs, which have sent its profits into a nosedive. But the firm’s parent company, Centrica, is still expected to today announce half-year profits of nearly £1billion across its whole business. [>

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The firm’s latest rises – nine per cent for electricity and the 35 per cent for gas – took effect yesterday.  [>

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For gas-only customers, it will add £228 to their annual bill. For those on dual tariffs, the annual bill will rise by £261. [>

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The increases follow a 15 per cent rise for both fuels  in mid-January. British Gas customers on dual tariffs have now suffered a £404 annual increase since the start of the year. [>

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The industry watchdog confirmed that the gas price increase was the biggest ever single rise in energy bills.  [>

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The director of campaigns for Energywatch, Adam Scorer, said: “It is a record. It means that if you are getting just your gas from British Gas it is putting up your bill more than 50 per cent in a single year. That amounts to an assault.” [>

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Energy Minister Malcolm Wicks said the Government was “deeply concerned” about the effects on families and vulnerable people. Winter fuel payments to over-60s and over-80s this year will include an extra £50 and £100 respectively to reflect the higher costs. [>

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He added: “The UK is not alone in having to pay more for its energy – high oil prices are being felt across the globe.” [>

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But Liberal Democrat leader Nick Clegg said the increases would devastate many families. [>

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“The announcement may have been made in a hot spell in July, but when winter comes thousands will be forced to choose between heating their homes and cooking their meals,” he warned. [>

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Shadow Energy Minister Charles Hendry said: “Britain is being hit especially hard, as the Government has utterly failed to prepare for rising fuel prices during the years of relatively low bills.” [>

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Energyhelpline.com director Mark Todd warned: “Energy bills are spiralling out of control and we predict that the remaining four energy providers will follow suit. We urge consumers to take control of their finances and switch to a capped tariff.” [>

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British Gas, the biggest energy firm, said its latest increases would immediately affect around 13.5 million of its 16 million customers. [>

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Another 2.1 million British Gas customers are on fixed-price deals and will only feel the impact when those end. [>

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Gas-only customers will now pay an average of £879 a year compared to £564 in early January – a 58 per cent increase. [>

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Those on a dual tariff will see their bills climb by 44 per cent to £1,317 a year for the average household from £913 in January. [>

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British Gas blamed its increases on surging wholesale gas costs which are up 89 per cent for the coming winter compared to last year. [>

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The firm is hit hard by wholesale increases because it buys in nearly three-quarters of its gas supplies. [>

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British Gas Managing Director Phil Bentley said: “We very much regret that we have had to make this decision at a time when many household budgets are already under pressure. [>

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“The simple fact, though, is that we have entered a era of unprecedented high world energy prices. [>

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“The only answer to cope with higher energy prices, I’m afraid, is for all of us to be more energy-efficient and we will be contacting all our customers to show how they can save energy to try and offset these price rises.” [>

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British Gas is committed to no further rises for standard tariff customers in 2008 and last night it said it would offer customers further protection by launching a new fixed-priced tariff without a premium. [>

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Fixed Price 2011 will offer customers the opportunity to fix their gas and electricity prices at today’s revised rates until September 2011. [>

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British Gas residential profits plunged by 69 per cent to £166million in the first half of this year compared to £533 million in the same period last year. [>

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But its parent company, Centrica, is today expected to announce group operating profits of around £880million for the six months to June 30 thanks to big returns in its production operation. [>

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British Gas pledged to keep its Essentials tariff used by 340,000 vulnerable customers unchanged until next April. [>

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Rival energy firm EDF pushed up its bills by 22 per cent for gas and 17 per cent for electricity last Friday. [>

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The other big energy suppliers are now expected to follow suit by bringing in massive rises, creating a winter of misery for struggling householders. [>