26 November 2007
Energy bills are set to grow by around 10% in the New Year, uSwitch has warned.
The increases - representing around £91 extra on the average bill - have been predicted by research from brokers Catalyst.
Reasons behind the rise include lessening oil supply from North Sea fields and general wholesale price increases - a barrel of crude oil currently holds an unprecedented $100 market price, for example.
Consumer Policy Director at uSwitch Ann Robinson commented: "This is going to squeeze household budgets dry - if the increase is across the board then households can expect to pay almost £100 more on their energy bills.
"The timing couldn't be worse - this winter is expected to be colder than last, plus consumers will be facing the full impact of the credit crunch in the New Year."
She added: "This doesn't bode well for 2008."
According to government estimates, for every 1% rise in energy bills, 40,000 UK households go below the fuel poverty line - where more than 10% of income is spent on providing satisfactory heating.
Therefore, Catalyst's predicted rise could see 400,000 additional households pushed into fuel poverty.