UK’s biggest gas and electricity supplier, British Gas has announced an increase of 6 per cent in tariffs that would result in an increase in average duel fuel bill to about £80 in the UK.

British Gas managing director, Phil Bentley said that the increase is required due to the increase in costs that are outside the control of the company. The increase will come into effect from 16 November, according to the company.

“Britain's North Sea gas supplies are running out, and British Gas has to pay the going rate for gas in a competitive global marketplace. Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers' homes, and the costs of the Government's policies for a clean, energy-efficient Britain, are all going up,” he said.

The company estimates show that the average dual fuel bill for British Gas customers will increase by £80 to about £1,238 per annum. A total of 8.5 million households in the UK will be affected by the increase in prices while another one million British Gas customers who are enrolled in fixed price schemes will not be affected by the increase in tariffs.

It is expected that other suppliers might also follow suit and increase tariffs.