Hard-hit consumers braced for further energy price hikes

Households have seen energy bills rise by an average of 5.9 per cent in the last three months and are set for further bad news as the unrest in North Africa and the Middle East feeds through to fuel prices.

Wholesale electricity prices have risen 40 per cent over the last year, while wholesale gas prices have increased by twice as much, according to Energyhelpline.com. Suppliers typically buy their gas and electricity in advance and higher wholesale prices tend to be reflected in energy bills about six months later.

Mark Todd, the director of energyhelpline.com, said: "Unfortunately, there is no getting away from the fact that the instability in the Middle East and North Africa is not only impacting the cost of petrol, but also domestic fuel.

"Ultimately, this is going to be passed on to the consumer and, on current trends, we would expect to see more rises for householders at the end of the summer to early autumn."

All of the big six energy suppliers raised their prices over the winter. The last increase was from EDF at the beginning of this month, to the tune of 6.5 and 7 per cent for gas and electricity prices respectively.

Energy prices could also be affected by the nuclear crisis in Japan. The cost of liquified natural gas (LNG) - which covers about a fifth of the UK's gas needs - has leapt to a two-year high as supplies are diverted to Japan, already the world's biggest consumer of LNG.

The new threat of bigger energy bills comes as households absorb the biggest winter energy bills on record.

Todd said: "Consumers who want to play it safe really need to think urgently about insuring themselves against future price rises by opting for a fixed tariff deal.

"The cheapest fixed deals are only likely to rise in price as world oil and gas prices seem to be back on an upward cycle."