11/12/2001

British Gas to raise gas prices in New Year

British Gas is set to raise domestic gas prices by 5.3 per cent in the New Year, increasing the average UK domestic gas bill by £17 per year.

The company blamed the rise in costs due to the cost of buying wholesale gas almost doubling in the last year and a half.

However a number of consumer groups have criticised both the price increase and the timing of the rise, when many people are struggling with extra expenses after the festive period.

Ofgem, which regulates gas and electricity industries, said the price increase, which comes into effect on January 3, 2002, is permitted under its present price control bands.

It advised dissatisfied customers to buy their gas from a different supplier. (MB)

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