Centrica, the owner of British Gas, today gave a fresh signal that energy prices for its 16 million customers would have to rise again this year when it said it continued to trade in line with guidance given in May.

The Times revealed on Wednesday that consumers could be hit by 40 per cent increases in energy bills this year, as wholesale gas prices have increased by nearly threefold in a year from 36.35p per therm in June last year to 94.54p yesterday.

Market experts have suggested that power companies will stagger increases, with one in the summer and another in late autumn, so as to avoid a public outcry. A 40 per cent increase in bills would take the average bill from £1,048 to £1,467.

In a two-line trading statement this morning, Centrica declined to add to its May interim management statement, which said that first-half profit would be materially lower than in the first half of 2007, due to lower profitability in its British Gas residential business.

At the time, the company gave a strong hint that it would have to increase prices for its domestic customers. "While the current outlook for gas prices does create a challenging environment for energy suppliers, we will take the necessary action to deliver reasonable margins in the retail business."

Its shares were flat at 306p in early trading.

Centrica said that margins were being squeezed by rising wholesale gas prices, which, in May, were 92 per cent ahead of where they were last year.

The British Gas group raised prices by 15 per cent at the start of this year, taking the company’s average annual dual fuel bill to £1,055, up £143.

Britain’s five other big domestic energy suppliers – E.ON, npower, Scottish and Southern Energy, ScottishPower and EDF – have also raised gas and electricity prices this year.

Centrica made no comment on its negotiations with British Energy, the nuclear generator that has been going through an auction. Centrica was in negotiations with EDF, the French energy giant that was in pole position to buy British Energy until its bid was rejected by British Energy's board as being too low in the current environment of soaring power prices.

Centrica continues to negotiate with British Energy, alongside other energy groups, as the nuclear generator is now re-considering its original plan of forming consortia with other parties, to develop new nuclear power stations on its sites.

The British Gas owner also omitted any reference to a potential tussle with EDF in Belgium over SPE, Belgium's second biggest electricity supplier. The French state gas group, GdF, has to sell its SPE stake as part of a condition of its merger with Suez, the French electricity giant.

Centrica, which owns 25.5 per cent of SPE, has pre-emption rights on the GdF stake.

Money Central: 10 tips to beat the energy price hikes

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax