Gas firm warns of new price rise

British Gas group Centrica today signalled household bills may have to rise for a second time this year as it battles against rising energy costs.

Centrica, which sold its AA business for £1.75bn (€2.6bn) earlier this month, warned the rest of 2004 was likely to be “even more challenging” with margins set to be considerably lower following a 28% rise in wholesale gas prices.