The Bank of England has predicted that energy prices are set to increase.
In its latest Inflation Report, the Bank states that between July 2011 and March 2012, gas prices will increase 15 per cent and electricity will rise ten per cent.
This is down to the rising cost of crude oil and gas, driven by the Middle East unrest.
Such news could lead to concern among households, who are already facing high energy bills.
Indeed, uSwitch.com calculates that if the Bank is correct, household energy bills could increase by around £148 a year.
“Two suppliers have already hinted at more price rises, but this warning from the Bank of England seems to bring a second round of energy price hikes a step closer,” commented Tom Lyon, energy expert at the comparison website.
Offering some relief for consumers, Ofgem is undergoing a consultation to increase transparency in the energy market.
Also, its rules requiring utility firms to notify customers of any price rises 30 days in advance have now come into effect, giving households time to switch tariffs.
Posted by Emily Thomas
Sign up for regular email updates to help you save money and energy
For more information please see: Inflation Report
View the original article here