Centrica losses 'to force price rises'

• By E4B
• 21 July 2008
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British Gas owner Centrica is reportedly set to increase the cost of its energy due to losses it has incurred other recent months.

According to the Financial Mail, the commercial electricity supplier is expected to introduce a price rise of over 30 per cent in the coming weeks, with the average household bill set to reach £1,300 a year.

It is believed that Centrica will soon announce a fall in profits for the six months to June, which is expected to be used as a reason for the company to increase its prices.

The newspaper added that it is thought the rise will come at the end of August, although no final decision has yet been taken on when it will be introduced.

Earlier this month, the Times also reported that British Gas was gearing up to increase the cost of its energy.

According to that newspaper, the rise will be a minimum of 15 per cent, while other suppliers are expected to follow suit soon afterwards.