British Gas Announces Steep Hike in Energy Prices

British Gas has begun notifying its customers that it will raise domestic tariffs for gas by an average 18%, and for electricity by an average 16%, on 18th August 2011. According to British Gas the move follows steep rises in wholesale costs, which have increased 30% since last winter because of higher global demand for gas, driven by increased consumption in Asia and the impact on supply of unrest in the Middle East and North Africa.

Britain now imports almost 50% of the gas it needs from other countries around the world, and British Gas has to pay the market rate in the global wholesale energy market.

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