British Gas to raise prices

British Gas is to increase prices for domestic customers, with a dual-fuel bill going up by 9.2% from 23 November.

The increase, which will affect nearly eight million households in the UK, includes an 8.4% rise in gas prices and a 10.4% increase in electricity prices.

The company said it "understands the frustration" of prices rising faster than incomes. The average annual household bill will go up by £123.

Rival SSE has already announced an 8.2% increase in bills from 15 November.

On average, customers will see a dual-fuel bill increase to £1,444 a year.

The company said that the cost of buying energy on the global markets, delivering gas and electricity to customers' homes, and the government's "green" levies, were all factors in the decision to put up prices.

British Gas, the UK's biggest energy supplier, said in May that a profit boost would be used to delay future price rises. This came because customers used 18% more gas in the first four months of the year owing to the cold weather.

Between August and December last year, the 'big six' energy companies outlined price rises of between 6% and 10.8%.