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UK Gas Prices to Rise By 14 Percent

Posted on: Saturday, 10 September 2005, 09:00 CDT

UK gas prices to rise by 14 percent

LONDON, Sept. 9 (Xinhua) -- Customers of British Gas, a leading British player in global energy market, are facing higher fuel bills after the company said on Friday gas and electricity prices would rise by 14 percent.

The BG will increase residential charges across the Britain from Sept. 19, blaming rising oil prices and shrinking domestic gas reserves.

The company said it would offer a 60 pound rebate to 250,000 low- income customers to help them pay bills over the winter.

Rivals Powergen and EDF Energy have also announced price rises recently as commodity prices surged to records.

The forthcoming price rises will apply to all British Gas and Scottish Gas customers.

Wholesale gas prices have been 50 percent higher than a year ago, while electricity prices have gone up by 61 percent over the past year, and the markets are expecting them to rise further.

"We are no longer an energy island - spiraling world oil prices are now having an unprecedented impact on the cost of gas as the UK is now dependent on imports," said BG managing director Mark Clare quoted by BBC.

Britain, which has long been regarded as an island of energy with its rich oil and gas reserve, reached its production peak in 1999, and the country has become a net oil importer.

Source: Xinhua News Agency - CEIS

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