Further power bill hikes predicted

Price comparison website uSwitch.com said another hike of up to 10% would increase a typical consumer's dual fuel energy bill by a further £105 to £1,153 a year.

The prediction came as Scottish and Southern Energy became the last of the UK's six main suppliers to increase fuel bills, raising its tariffs by an average of 14.2% for electricity and 15.8% for gas from April 1.

USwitch.com warned that the price of gas on the forward market for next winter is 22% higher than it is at present, making the cost of procuring energy more expensive for suppliers.

It said this cost was unlikely to be absorbed by energy companies, suggesting consumers' bills still have further to rise.

Tim Wolfenden, head of home services at uSwitch.com, said: "Consumers cannot afford to breathe a sigh of relief yet - the way the market is looking at the moment, we can expect a second round of energy price hikes which could add up to 10%, or £105, to household bills.

"Increases in the cost of gas on the forward market will make further price rises inevitable before the end of the year - the industry has margins to protect and shareholders to satisfy.

"It will not meet all the cost out of its own pockets and is likely to ask customers to help cover the burden."