Sky Sources: British Gas Plans Price Hike

British Gas is planning inflation-busting increases to its gas and electricity bills from the middle of November, according to Sky News sources.

Confirmation of the hike, due later this morning, is expected to be lower in percentage terms than rival energy company SSE which said it would increase its bills by 9% from October 15.

Around 16 million businesses and household customers will be affected.

British Gas, which is the largest provider of energy to households in the country, has refused to comment on speculation over the move.

SSE blamed its rise on "sustained increases" in the cost of using the electricity and gas networks, which include mandatory Government schemes and the price it pays for energy in the wholesale markets.

But consumer groups were quick to condemn the price increase which, combined with the rising cost of food, could mean that many consumers face a tough winter.

The so-called Big Six - British Gas, EDF, E.On, NPower, Scottish Power and SSE - control 99% of the UK's domestic energy supplies.