British Gas hikes prices up by 14.2%

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Hosts that use British Gas for their gas and electricity will experience a sharp rise in their fuel bills after the company increased prices by 14.2%...

Hosts that use British Gas for their gas and electricity will experience a sharp rise in their fuel bills after the company increased prices by 14.2% this month.

British Gas said the rise is a result of dwindling North Sea reserves and the effects of Hurricane Katrina. This is the second significant price rise in just over 12 months.

Online price comparison service Uswitch.com said it was the biggest single price increase by any supplier so far this year.

Federation of Licensed Victuallers' Associations chief executive Tony Payne said: 'We advise licensees to check their agreements and consult a broker for the best deals. Lots of people don't know there are different tariffs for electricity.

Bernard Brindley, licensee of the White Lion Inn, Pailton, Warwickshire, holds a five-year contract with his energy supplier and won't feel the effects until the contract is up.

But he is worried suppliers will increase their prices. 'It's only a matter of time before breweries and suppliers have to raise their prices, he said.

Payne added: 'The rise in fuel prices will affect the delivery of goods and going to the cash and carry. Licensees will have to see where they can make cuts.

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