PRESS DIGEST - British business press - July 7

Monday, 7 Juy 2008

The Times

BRITISH GAS EXPECTED TO RAISE PRICES BY AT LEAST 15 PER CENT

Sixteen million British Gas customers may see their bills rise by at least 15 per cent within a matter of weeks as the company prepares for a fresh round of energy price rises. British Gas's owner, Centrica(CNA.L: Quote, Profile, Research), is having difficulty maintaining profitability in its retail energy business because wholesale gas prices have trebled over the past year. All of Britain's big power companies are facing similar pressure and they are all expected to raise prices over the next few months.

VALUE STORES SET TO GROW AS SHOPPERS TRADE DOWN

A report from the Institute of Grocery Distribution reveals that over the next four years, discount supermarkets, such as Aldi, Lidl and Netto, are forecast to grow their share of Britain's grocery market by 60 per cent. The report claims that the chains will generate nearly 7.5 billion pounds of sales in 2012, compared with 4.5 billion pounds last year. Aldi and Lidl have been the biggest beneficiaries from the consumer slowdown and Marks & Spencer(MKS.L: Quote, Profile, Research) claimed last week that it was losing market share as customers 'traded down' to cheaper rivals.

NEED TO KNOW: LEGAL & GENERAL