Lib Dem Leader Clegg slams British Gas price jump

4.01.33pm BST (GMT +0100) Wed 30th Jul 2008

British Gas owner Centrica has announced it is to raise gas prices by 35% and electricity prices by 9% with immediate effect.

The move comes just a few days after rival EDF Energy put up gas prices by 22% and electricity prices by 17%, with other firms expected to follow suit. Watchdog Energywatch said it believed the 35% gas bill rise was the biggest single increase in the price of a utility seen to date.

Commenting on the British Gas decision to raise gas prices by 35% and electricity prices by 9%, Liberal Democrat Leader, Nick Clegg said:

"For many families, and particularly for the elderly and the vulnerable, this will be a devastating price rise. The announcement may have been made in a hot spell in July, but when winter comes round thousands will be forced to choose between heating their homes and cooking their meals.

"British Gas has thousands of customers paying fixed rates, but when those terms expire they will be hit with staggeringly high bills.

"Instead of fighting over who should be sitting in Number 10, ministers need to be dealing with the real issues that are causing real problems for people across the country. Energy companies are benefiting from a £9bn windfall yet continue to hike up their prices on the Government's watch. This is unacceptable."

The Liberal Democrats launched their Tackling Fuel Poverty document last Monday. It included proposals to compel energy companies to use money from the £9bn European windfall to help protect some of the most vulnerable people from the effects of fuel poverty.

Specific proposals include:

• Making energy companies invest £500m a year into a rolling programme to make sure homes are properly insulated

• Requiring energy companies to roll out social tariffs to over two million vulnerable customers

• Installing smart meters in homes, which display real time consumption costs