LONDON, Jan. 18 (Xinhua) -- British Gas, the biggest power provider of Britain, announced on Friday to raise gas and electricity charges by 15 percent.
British Gas, owned by Windsor-based Centrica, said in a statement that it would make a loss this year without the price rise.
"In the last six months of 2007, higher wholesale gas prices have reduced British Gas operating margins to around 1 percent," the statement said.
At current wholesale prices British Gas "would be loss making in 2008 without the increase," Centrica said, blaming rises in the price it has to pay to transport and distribute energy, as well as the cost of meeting the government's targets for the use of renewable energy sources and reducing carbon emissions.
The 2.4 million British Gas customers on fixed-price tariffs will not be affected. A total of 340,000 vulnerable customers on its Essentials tariffs will have the price increase delayed until the end of the winter, the statement said.
British Gas is also offering free insulation to any British home owned by somebody over the age of 70.
British Gas cut its tariffs in March 2007, and then again the following month to reflect falling wholesale energy prices.
British Gas's announcement followed increases from rivals Npower and EDF Energy, with the later two also blaming high wholesale costs.
Npower raised its electricity prices by 12.7 percent and gas by17.2 percent earlier this month, while EDF Energy also put up its electricity tariffs by 7.9 percent and gas bills by 12.9 percent earlier this week.
Consumer groups and the Unite trade union have criticized the move, saying it would make life harder for firms, the elderly and those on low incomes.
British Gas, owned by Windsor-based Centrica, said in a statement that it would make a loss this year without the price rise.
"In the last six months of 2007, higher wholesale gas prices have reduced British Gas operating margins to around 1 percent," the statement said.
At current wholesale prices British Gas "would be loss making in 2008 without the increase," Centrica said, blaming rises in the price it has to pay to transport and distribute energy, as well as the cost of meeting the government's targets for the use of renewable energy sources and reducing carbon emissions.
The 2.4 million British Gas customers on fixed-price tariffs will not be affected. A total of 340,000 vulnerable customers on its Essentials tariffs will have the price increase delayed until the end of the winter, the statement said.
British Gas is also offering free insulation to any British home owned by somebody over the age of 70.
British Gas cut its tariffs in March 2007, and then again the following month to reflect falling wholesale energy prices.
British Gas's announcement followed increases from rivals Npower and EDF Energy, with the later two also blaming high wholesale costs.
Npower raised its electricity prices by 12.7 percent and gas by17.2 percent earlier this month, while EDF Energy also put up its electricity tariffs by 7.9 percent and gas bills by 12.9 percent earlier this week.
Consumer groups and the Unite trade union have criticized the move, saying it would make life harder for firms, the elderly and those on low incomes.
