BRITSH Gas has announced that it will be increasing gas and electricity prices by 14.2 per cent for the vast majority of its 17 million customers with effect from September 19.

It's the third increase in the last 20 months and will see the average gas bill increase by £61 and the average electricity bill increase by £39.

British Gas has also announced that it would be launching a new fixed price product allowing dual fuel customers to fix their energy prices until 2010 at no extra cost over the new higher Standard prices

TheEnergyShop.com, the independent energy price comparison website, is urging British Gas customers to review their energy bills and go for the cheapest long term Capped price deals before they are withdrawn. This will not only save them money but also protect them against further price increases until May 2007.

Joe Malinowski, chief executive of TheEnergyShop.com commented said on Friday: "We have been warning consumers for some time now that substantial energy price increases are on their way. Today’s announcement will affect 11 million households to the tune of £830 million a year”.

According to figures from TheEnergyShop.com, the latest increase will add another £100 a year to the energy bills of the typical household supplied by British Gas.

Larger users will be even worse off with their bills rising by a staggering £137 a year. Since January 2004 British Gas customers have seen their energy bills rise by £206 a year.

TheEnergyShop.com is urging British Gas customers to urgently review their energy bills and to switch to a cheaper Capped price deal.

While the British Gas Price Protection 2010 product is an interesting option for customers keen to stick with British Gas, figures from TheEnergyShop.com show that it is still £95 a year (14%) more expensive than the May 2007 (G) Capped Product from ScottishPower Online and £143 a year (26%) more expensive than the cheapest uncapped products.

Mr Malinowski commented: “Given the significant rise in wholesale energy markets over the past years, this price increase from British Gas is not unexpected, although on the electricity side it is much higher than we were forecasting.

"However, you now have the situation where British Gas customers can switch to a cheaper Capped Price deal giving them a saving of around £95 a year and get price protection all the way out until May 2007. Deals like that are just too good to last and it would be unfortunate if customers did not take this opportunity while they can." For further information contact Joe Malinowski on 07970 160541 or at joe.malinowski@TheEnergyShop.com.

For a copy of thne Regional Guide to Fixed Rate/Capped Energy Prices, visit www.TheEnergyShop.com or email info@TheEnergyShop.com