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Cheap energy price hikes 'could lead to more fuel poverty' - 21/12/2010

The recent freezing conditions could lead more households to rely on cheap energy or else find themselves in fuel poverty.

According to a report by Channel 4 News, last year 4.1 million households in the UK were classed as being in fuel poverty, meaning each spent at least ten per cent of their income on heating the home.

The government believes this figure could increase as energy suppliers raise the price of electricity and gas over the coming months.

British Gas, Scottish and Southern Energy and Scottish Power have already announced changes to the price of their tariffs, while last week, npower unveiled a five per cent hike in bills, which will come into force next month.

EDF Energy has frozen its prices until March 2011 and E.ON has not yet spoken of any increase in costs of cheap electricity.

Meanwhile, gas demand rose to a record high yesterday (December 20th), leading National Grid to issue a Gas Balancing Alert.

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