British Gas set to increase utility costs

utility price rise

utility price riseAs if we haven't already had enough of price hikes over the past year or so, the latest disappointment for many of us is that British Gas is on the brink of pushing up its utility costs even more.

Centrica, the energy firm's owner, has announced that its costs are mounting which means it could impact on customers, who as ever will be keen to come up with ways to reduce their energy bills.

January saw a reduction of the company's standard electricity tariff by 5%, following hikes in energy bills during the summer, but the group cautioned that the trend for retail energy prices will continue to climb.

This means that it will be £50 more expensive for the firm to supply energy to the average home due to the 15% hike in wholesale gas charges, as well as general price increases.

It's thought that the series of cuts to utility bills a few months back were too little to offset the recent price increases, during a time when relief on rising costs is needed to help families feeling the pinch from the double-dip recession.

In August last year gas prices from British Gas jumped by almost a fifth (18%) and electricity by 16%, affecting 15.9 million of its residential customers.