Centrica warns of rising costs

Households are facing the prospect of more energy price hikes after British Gas owner Centrica warned its costs continued to mount.

The UK's biggest energy supplier dropped its standard electricity tariff by 5% in January after big rises in both gas and electricity bills over the summer.

But it warned that the trend for retail energy costs "remains upwards", with wholesale gas prices 15% higher for next winter and other costs set to add £50 to the cost of supplying the average household this year.

©Press Association