British Gas bumps up prices by 18 per cent

Millions of British Gas customers are to face the misery of higher utility bills after the company said it is putting up the price of both gas and electricity again.

Gas prices will rise by an average of 18% and electricity bills by an average of 16%.

The increases, which will come into effect from August 18, will see the average dual fuel energy bill rise by 190 a year.

The announcement was made at 10am today - as Prime Minister David Cameron was in the middle of announcing plans to deal with the News of the World phone-hacking scandal.

British Gas said it had raised its prices in response to a 30% hike in wholesale prices since last winter.

It is the second of the "big six" companies to put up prices after Scottish Power announced a 19% hike in gas prices and 10% hike in electricity last month. Other companies are expected to follow.