British Gas to increase gas and electricity prices by 5.5%

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British Gas is to increase the energy prices for those on standard tariffs by an average of 5.5% - or £60 a year.

The rise, which applies to both gas and electricity, will see the average annual dual-fuel bill go up to £1,161.

The increase will take effect from 29 May and means British Gas is the first of the major suppliers to raise prices this spring.

Those customers who move onto a default tariff after their fixed deal ends will also see a £60 rise.

'Pressure on bills'

British Gas, the largest of UK energy supplier, said that 4.1 million of its customers would be affected by the price rise.

It said it had to lift prices following a rise in the cost of producing energy - including wholesale costs.

The company pointed to a similar decision by energy regulator Ofgem, which recently blamed wholesale costs for the rise in the default tariff for those with prepayment meters.

Mark Hodges, chief executive of Centrica Consumer, of which British Gas is a part, said: "We fully understand that any price increase adds extra pressure on customers' household bills. This increase we are announcing today is reflective of the costs we are seeing which are beyond our control."

He also blamed the extra charges it faced as part of government policy.

"Government policies, intended to transform the energy system, are important but they are putting pressure on customers' bills. We believe government should level the playing field so the customers of all suppliers pay a fair share of energy policy costs," Mr Hodges said.

"We continue to encourage government to consider moving these costs out of energy bills altogether and into general taxation."