The move will see the cost of gas increase by 12.4% and electricity by 9.4%

The company blames the increase on the rising cost of wholesale gas which has risen sharply since last year, partly due to higher crude oil prices.

However, it has pledged �10m to protect vulnerable customers who may not be able to absorb the latest rises.

What do you think of the decision by British Gas to increase the price of its gas and electricity? Will it encourage people to conserve more energy? Will you switch suppliers? Do we pay too much or too little for our utilities?

This debate has now closed. Thank you for your comments.

Your comments:

Other suppliers are rarely significantly cheaper Simon Lamb, Teddington, UK

Price should not be the only factor. In the last 2 years we've switched suppliers twice. In recent weeks we have received final demands totalling over �1000 (annual gas usage was no more than �300). Sorting it out was a task I could have done without but I have discovered that energy suppliers need only read meters every 2 years and error can easily occur. British Gas read meters every quarter. Other suppliers are rarely significantly cheaper and there may be unforeseen disadvantages. Based on recent experience, I would suggest staying put.
Simon Lamb, Teddington, UK

What's new? Bills are always going up in this country far too much, and now my blood pressure is going up too!
Ketan, Neasden, UK

While I'm not happy with the increase, the others will follow suit anyway. The biggest fish always gets the most flak but all the energy companies are in the same boat.
Jason, Cambridge, England

I am on low income and pay through a meter. Guess I lose out yet again as they have my money up front. Why can't I get it cheaper, not dearer than people paying quarterly in arrears.
AJ, UK

If we are to protect the environment we need to pay more AB, Hove, UK

We pay too little for our utilities. If we are to protect the environment we need to pay more. I recently signed up to a renewable energy provider and it is considerably more expensive but I urge others to do the same.
AB, Hove, UK

I think it is time to put customers and environment first and shareholders last. When people start voting with their feet then the message to big companies will become clear - you can't just raise costs all the time.
Allan Dade, Maidstone, UK

Thank you Mrs Thatcher who said coal mining was not economic and we would benefit from a changeover to our own plentiful gas and oil reserves. Never believe a politician.
John Baxter, London

I'd like to say I don't care, because some you win, and some you lose. But that isn't true right now. They say the economy's growing, but my disposable income seems to be shrinking.
Mike Page, Folkestone

I have just been made redundant by British Gas after they declared massive profits for the year. They could have softened the impact with a gradual increase and not a ludicrous one which has happened. I think the timing of their announcements have come at an inappropriate time for the country. As a company I feel British Gas is only concerned in how much money they make!
Geoff, Swansea, Wales

We received the letter from British Gas telling us of the rises about two months ago. We'll definitely be voting with our feet and changing suppliers. I'd accept a rise with inflation but 12% is being greedy.
Phil Silver, Hitchin, Hertfordshire

Make sure you are as energy efficient as you can be Kelly, Portsmouth

This should not come as any surprise. When the energy industry was deregulated many companies, including British Gas kept their prices artificially low to win and/or keep customers. I think the important thing is to make sure you are as energy efficient as you can be.
Kelly, Portsmouth

This will be felt by middle-class households the most, which is probably why there is such an outcry. Paupers like me who live in properties that use pre-payment meters are already paying through the nose as it is, but do we hear a media outcry about that?
Jerry, Exeter, UK

I switched from a competitor to British Gas last month after tempting offers from them. It's odd that they didn't mention a price hike was on the cards. If their competitors don't follow suit then I'll definitely switch back at the first opportunity.
Andy Roberts, Southend-on-Sea, Essex, UK

Of course it's costing much more to import gas and crude oil products - we started a war in the area where the vast majority of it comes from! This is simply yet another way we're having to pay for Blair's stupidity in following Bush's war for oil. Cheers, Tony.
Sian, Coventry, UK

Someone has to pay for the Ferraris driven by those working in the city who trade in oil and gas futures.
Joseph Wilkinson, Whitehaven, UK

I thought British Gas would have kept a low profile for a while as the AA was sold by Centrica, British Gas announced massive profits and they announced 850 job losses. It seems like British Gas have only their profits in mind when making this decision. I switched my supplies a long time ago, there is nothing British about this company anymore.
Paul Vaughan, Plymouth, UK

Stop whinging, get solar heating Simon Mallett, Maidstone

This is the best thing to happen for ages. Maybe people will now start taking alternative and renewable energy more seriously! Stop whinging, get solar heating and see your energy costs tumble and you'll be doing something good for the environment as well!
Simon Mallett, Maidstone

I see this as further evidence supporting the argument that inflation is moving upwards and with it the possibility of a recession. In the face of shocks like these, interest rates simply will not control the economy.
Rex Lester, Chessington, UK

With British Gas having the biggest stake in the energy market, they feel that they can increase their prices and their competitors will follow. I changed from British Gas the last time that they raised their prices and have found my current supplier cheaper and a higher level of customer service.
John McNally, Bath, England

With British Gas making 850 people made redundant this year and having to pay out substantial redundancy packages, this is part of the reason for these price increases.
Adrian Matthews, Newport, Wales

Increasing prices does not mean less use Andy, Reading

Energy prices are likely to rise further as supplies become harder to source. However, like with petrol, increasing prices does not mean less use, and therefore do not benefit the environment. The cost increase will have an effect on poorer people, who also often have houses which are not very well insulated.
Andy, Reading

Now is the time to re-nationalise the electricity, gas and water companies.
Alan Hall, Evesham, Worcs

This must come as the best marketing for British Gas competitors, just like the rail industry, hype prices and customers go elsewhere!
Ron, Middlesbrough

It's an inevitable result of North Sea gas running out and the high price of oil. I am amazed that anyone is surprised.
Richard Read, London, UK

How many consumers will receive a pay rise over the next 3 years worth 12.4% & 9.4%? No-one in my household - it's outrageous. How can British Gas justify this?
Sue Duxbury, Chorley, Lancashire

Is British Gas supposed to be a charity? John, London

Gas prices in the market have gone up. Is British Gas supposed to be a charity? Isn't it about time we got some consumer watchdogs and regulators who have a grip on reality?
John, London

At the moment we pay far too little for our energy, be it electricity, gas or oil. We may not want to pay more now, but like it or not when oil and other fuels begin to run out we will be faced with far greater bills. We need another energy crisis to put things in perspective.
Daniel Watters, Haverfordwest, UK

Let's get real and realise that the safe and constant delivery of oil based energy costs MONEY, and can only get more expensive in the future, as the oil and gas extraction costs increase. The real investment in alternative fuel sources should have been seriously started thirty years ago.
Ed Johnson, Geneva, Switzerland

I'm afraid people are going to have to start getting used to an ever increasing fuel price (both oil and gas). We are much closer to 'peak oil' and 'peak gas' then most people realise. I advise people to do an internet search on either of the above - what they will find will alarm them.
Andrew Hamilton, London, UK

When will the British public realise that privatisation by both Tory parties has been a disaster? What was once a public asset is now being used for private greed.
Bill, Lanarkshire

This is only the beginning. In very short time there will be no fuel of any kind and our country is completely unprepared for this. Get ready for the return of hard times.
Brian Langfield, Yorkshire, UK

British Gas said you could cut �50 off your bill if you pay by direct debit. Did they also mention that your bank will charge you �30 a time if you don't have the money? This is why low income families avoid direct debit in the first place.
Huw, UK

They are still inefficient and staff are completely demoralised John, London, UK

I left Centrica, which has British Gas at its core, some time ago. They have rigorously cut their workforce through very shady work practices involving summary redundancies, firing people with 20 years + experience and in the process paying huge redundancy payments. They have invested hundreds of millions of pounds in new IT platforms and systems to become more efficient. However, they are still inefficient and staff are completely demoralised. Do you now see the real reason for these increases?
John, London, UK

This is the second large increase in six months. Where will it all end? The problem has been with us since privatisation. The customers are taken for a ride in order to sustain the vast amounts paid to fat cats and shareholders. Absolute disgrace. Just think of the difficulties faced by many on low incomes and the many who are disconnected as a result.
Jim, Saltash, UK

Here in Sweden we pay far more than you for energy for the house, electricity cost about 9p/kwh (48% tax) and heating oil cost last year 50p/litre (62% tax). Your energy prices are cheap, even after the rise.
Ian, Sweden

It seems like an inevitable side effect of taking care of the environment. People are making efforts to reduce the amount of energy they consume in their houses through buying more efficient boilers etc. The knock-on effect is energy companies have to raise their prices to keep profits flowing for their shareholders.
Giles Clinker, London, UK

I left British Gas a while ago along with BT and anything else that had "British" in front of it. They are expensive, inefficient and offer hopeless customer service. Thank goodness they now have competitors.
Philip Cleveland, UK