Gas Bills 'Might Rise by 40%'

UK energy bills might increase by £360 over the coming year, the Observer reports.

According to new analysis from industry experts contacted by the newspaper, gas costs for consumers could be 43 per cent higher within the next 12 months, with electricity prices going up by 21 per cent. This would see the average energy bill increase to around £1,410.

Unprecedented wholesale prices - with a barrel of crude oil hitting an all-time high of $139 last week - have been blamed for the trend. So high have these costs been, rising 76 per cent since the beginning of the year, that they are currently trading at above the prices which consumers pay: this means that energy firms are very likely to redress this balance and put bills up sharply.

The experts' predictions follows the release of research from Skipton Building Society, which warned that UK pensioners are currently struggling under the burden of rising fuel and energy prices.

According to the study, more than eight in ten over-55s have cut back on their spending so far in 2008 due to the inflation, compared with just half of 16 to 34-year-olds. This means that older Britons might be particularly vulnerable to future price rises.

Commenting, director-general of charity Age Concern Gordon Lishman said: "Hikes in food, water and energy bills have been a heavy blow to older people on low fixed incomes already struggling to make ends meet, and many will be cutting back to reduce their bills."