Increasing costs likely to result in British Gas bill prices rising

British Gas owner Centrica warned that costs of supplying gas and electricity is set to add £50 to the cost of the average household bill. Photo: Reuters

New energy price shock: you are paying for far more than gas in your gas bill!

It's a shockwave through millions of household budgets - gas prices are rising.

There are signs of a tipping-point in what bill payers will face. Centrica, which has 16million customers through British Gas, says costs are rising.

The implication is that those extra costs will be passed on to us.

I spoke to one customer, Paul Ryan, who told me, "it is just dizzying, you feel like you shouldturn your heating down or off - but that's not always a good idea."

An average gas bill is now £1,024, but £80 would be added if whole sale prices rise the predicted 15%.

£50 would be added by "non-commodity"rises, bringing the total potential increase to £130.

Tom Lyon, an energy analyst at U-Switch, told me "non - commodity costs are things like distribution and green measures - which the energy firms themselves don't control but which are going up."

In January, British Gas announced a5% reduction in electricity - its change of tone now is expected to be followed by other firms.

It all comes as Centrica, the British Gas parent company, held it annual shareholders meeting today. Some were angry about bosses' pay.

Now the new price warning has brought even stronger complaints from customers.