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BG to warn of higher gas prices

12 May 2008

British Gas this week will warn householders that their annual gas bills could leap by as much as 30 per cent next winter, according to press reports.

With wholesale gas prices for next winter estimated at 85p a therm compared with 47p last winter, the increase could ramp up the average household energy bill to more than £1,200 a year, the utility will say in a trading statement.

BG said price rises were necessary to stop its retail gas business going into the red.

In 2007, the UK imported 27 per cent of its gas.

That figure is expected to increase to about 40 per cent this year.

The news will disappoint the Treasury as it looks to bear down on inflation tendencies in the domestic energy bills.

In relate news, the government has stated that it will not sell British Energy to any one single bidder, the Daily Telegraph reported. Edf in France was the only firm to put forward an official bid before last Friday's deadline.

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