PENSIONERS and poor families will be badly hit by an above-inflation rise in gas bills, consumer groups said last night.
British Gas announced yesterday that its prices would rise by 4.7 per cent from April 1, adding an extra £14 on the average annual bill.
Parent company Centrica blamed the increase on the cost of gas worldwide and said it was unlikely there would be another increase this year.
But a spokeswoman for consumer group Energy Watch North-East said the move could mean hardship for low income users.
She said: "We understand that world gas prices have gone up but we're disappointed that there will be an above-inflation increase.
"Such a rise will have an impact on the consumers who can least afford it, such as pensioners.
"We would encourage consumers to make the most of some of the good deals around in the competitive market and shop around for the best prices."
Dave Punshon, chief executive of Age Concern Teesside, said: "I think people will be confused - competition in the gas industry was supposed to drive prices down.
"For anyone on a very low income, an increase of more than four-and-a-half per cent, when inflation is running at one-and-a-half to two per cent, is bad news.
"I would question how they can justify an increase of more than double the rate of inflation."
Richard Hunt, spokesman for industry watchdog Ofgem, said it was unavoidable that some companies have had to pass the increase in wholesale prices on to the consumer.
Four other companies had already increased their prices by between four and six per cent.
He added that the price control on British Gas was being reviewed but would not affect this increase.
Centrica also announced a 3.7 per cent reduction in electricity prices for its domestic customers from April, meaning an average £9 reduction in annual electricity bills.
Comment - Page 8
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article