The cost of utilities for British Gas customers is to rise by seven per cent from December 10th, the company has announced.

Wholesale costs have led to the price rises, the firm revealed, which means the costs have to be passed on to consumers.

However, Adam Scorer, director of external affairs at Consumer Focus, believes opportunities have been missed in the past to lower gas and electricity bills for homeowners.

"Consumers will feel that suppliers didn't make cuts when conditions allowed it, but are covering their profit margins as wholesale prices nudge up," he explained.

He emphasised that with £200 billion earmarked to be spent on improving energy networks over the coming decade, the price of utilities looks set to increase even further for customers.

It is therefore important for people to recognise whether or not they are getting a good deal on their current tariff, Mr Scorer added.