British Gas is set to increase gas and electricity prices by up to 25%, affecting 11 million customers.

British Gas is set to increase gas and electricity prices by up to 25%, affecting 11 million customers.

Karen Darby, CEO from SimplySwitch.com comments: “Due to the wholesale market British Gas is considering its biggest ever price rise for its 11 million customers. As prices are already at an all time high, a further increase will hit many households hard and push an average annual household energy bill well above the £1,000 mark.

“As wholesale prices remain volatile, we have been expecting energy companies to announce further price increases and if British Gas puts its prices up, others will follow.

“These price rises will have a significant impact on consumers’ bills, but the providers are still relying on customer apathy - consumers have the option to switch to a better deal.

“Last month, British Gas sold out of its popular 2010 price protection tariff for new customers which shows current consumer demand for capped and fixed products. There are other capped and fixed options available and I would urge all consumers to sign up to one before they are withdrawn.

Since the start of 2004, gas prices have gone up by an average of 32% while electricity prices have gone up by an average of 24%. British Gas last increased its prices in September 2005 when they went up by 14.2% for both gas and electricity, adding £48.00 to an average annual bill.