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British Gas raises gas and electricity prices

British Gas has announced increases to the gas and electricity prices it charges customers.

It has raised its charges for both types of fuel by about 6 per cent, adding £80 a year to the average dual fuel bill.

The increase would come into effect on 16 November.

British Gas last raised its tariffs in August 2011, when gas prices went up by 18 per cent and electricity prices by 16 per cent.

Then in January 2012, it cut its electricity prices by 5 percent.

The company first warned in May this year that the gas prices were likely to rise this winter. On top of that, the company faced a bigger bill from the government.

British Gas said the cost of government policies and the national grid upgrade added £50 to the average household bill this year, and is expected to add another £60 next year.

It said that winter wholesale prices it pays were proving to be some 13 per cent higher this year.

British Gas is offering free loft and wall cavity insulation, which it said could save the average household £100 per year on their bill.

British Gas extended its offer of free insulation to non-customers earlier this year.

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