Energy bills 'could hit £1,500 a year' - 18/04/2012

A growing number of people may like to perform an energy price comparison to reduce the impact of rising bills, amid new suggestions of price increases.

It was reported by the Daily Express that industry insiders are warning further rises in wholesale energy costs will be passed on to consumers this year.

Expenses to suppliers are expected to climb by around 24 per cent by this summer, which is likely to mean the Big Six firms will respond with increased tariffs.

The newspaper noted that hikes of 20 per cent would result in the average annual cost of gas and electricity surpassing £1,500 a year.

Such a move would not be out of the question, as Mark Todd, director of independent price comparison site energyhelpline.com, observed increases of 20 per cent are "certainly not unheard of".

Last year, the major energy suppliers in the UK raised their charges by an average of 21 per cent, adding around £224 to a typical home's bills.

Although wholesale costs subsequently dropped early in 2012, charges were cut by an average of just 3.2 per cent in response.

Mr Todd called the suggestions of future hikes "alarming", while the Express noted another increase similar in size to last year's would increase the problem of fuel poverty and lead to some customers being forced to switch off their heating altogether.

Last weeks, plans to help people get the cheapest tariffs were unveiled by deputy prime minister Nick Clegg, which will see suppliers obligated to write to customers every year informing them of the best deal for their usage.

Make sure you're not paying too much for your energy - compare gas and electricity prices now at energyhelpline.com or call 0800 074 0745.