British Gas to increase prices

British Gas is to increase prices to millions of domestic customers by 5.9% because of "cost pressures", the company announced today.

The increase will take effect from January 10 for around 12.5 million customers and on March 1 for 2.5 million pre-payment customers.

The new prices will mean an extra 28p a week on electricity and 39p a week on gas for the average domestic customer.

Mark Clare, managing director of British Gas, said: "Underlying wholesale energy costs have risen since the summer and continue to rise. Like other suppliers, we are being forced to reflect these increased costs in our prices.

"Over the last few months we have been absorbing these additional costs
ourselves, but unfortunately we are no longer able to do so."