THE UK's biggest domestic supplier today heaped misery on households after hiking gas and electricity bills.

British Gas, which has 15.9 million customers, is raising gas bills by 35% and electricity prices by 9%.

Average dual fuel prices will jump 25%.

The company blamed soaring wholesale energy prices for the move, which follows price increases from rival EDF Energy last Friday.

The price hikes come into effect immediately and will add an extra £262.80 a year to the average dual fuel customer's bill, or 72p a day.

British Gas managing director Phil Bentley said: "We very much regret that we have had to make this decision at a time when many household budgets are already under pressure.

"The simple fact though is that we have entered an era of unprecedented high world energy prices."

The company blamed increasing global demand, diminishing UK gas reserves and record oil prices for the decision.

But it said standard rate customers will not be hit with any further prices rises this year, while 2.1 million of its fixed-rate customers will not pay any extra at all.

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