British Gas 'planning 10% price rise' Other suppliers predicted to follow in raising prices Rise would be four-times rate of inflation By Ed Monk Families face a new squeeze on their finances this winter after reports that the nation's largest energy supplier British Gas is preparing an inflation-busting 10 per cent rise in bills. Reports today claim that British Gas, which has 12million customers, will up prices next month in time for the winter when households use the most gas and electricity. British Gas currently charges the average user £1,340 for 'dual-fuel' gas and electricity. A 10 per cent rise would take the bill to £1,474. Price rise: British Gas is set to raise its prices with winter fast approaching British Gas is almost certain to be joined in raising prices by the other 'Big Six' suppliers - Scottish & Southern Energy, Scottish Power, npower, EDF Energy and E.On. The planned rise in bills is far ahead of general inflation. Earlier this week the official measure showed prices 2.7 per cent higher now than a year ago. British Gas would not confirm or deny that it is planning to raise bills. 'We won't comment on market speculation', a spokesman said. Scott Byrom, energy expert at price comparison website UKPower.co.uk, said: 'Ninety five per cent of people we polled this week said they've been expecting a price rise. However, it still comes as a slap in the face for consumers, particularly as it's no coincidence coming at precisely when the heating goes on.' Despite ever rising bills, energy suppliers claim it is harder and harder to make any money from supplying domestic customers. Regulator Ofgem reported last week that suppliers now make £65 per year from customers, down from £90 earlier this year. Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 10% rise Source: uSwitch.com Annual bill sizes based on a medium user profile on a standard plan. Customers using 3,300 kWh and 16,500 kWh gas, paying on receipt of bill with bill sizes averaged across all regions. British Gas EDF Energy npower ScottishPower Average Critics have doubted the suppliers' claims of slim margins, arguing that the complicated structure of suppliers, some of which generate and then sell on energy to the residential arms of their own business, means there is limited scrutiny of the profits being made. In July a report from the Energy and Climate Change Select Committee argued that greater transparency about energy giants" profits are needed to reassure consumers that they are not being ripped off. Half-year financial results for British Gas owner Centrica showed profits from the residential energy arm rose by 3.2 per cent, or £11million, to £356million after a price rise before winter last year meant it cashed in on freezing in the first half of 2013. British Gas made £23 every second from its customers after raising its prices last year, again just before winter. However, the company said that the extra £11million it made represented just 70p per customer. Emma Bush, energy expert at uSwitch.com, said: 'We have seen a number of suppliers announce an increase in profits this year - despite the rising cost of investment and Government taxes. These profits may be down to a particularly freezing winter last year, but that will be of cold comfort to consumers worried about prices rocketing again. It may be difficult for any supplier to justify price hikes and the pressure they would place on consumers. While energy suppliers make strong cases about future investment, I suspect there would be little sympathy if consumers were asked to swallow another increase to their bills. Prices have been tipped to rise for most of this year. At the time of its results Centrica said that new regulations which demand that energy companies help tackle fuel poverty by making homes more energy-efficient are proving so expensive they risk backfiring and driving prices up. Finance director Nick Luff said at the time: 'We will keep prices as low as we can for as long as we can. If prices do have to go up, we will delay it for as long as possible.