Energy bills to rise by £160 a year

Household energy bills will soar by at least £160 a year under plans for greener electricity, Energy and Climate Change Secretary Chris Huhne admitted today.

The rise will set in by 2030 as a result of measures to boost low-carbon energy production. He outlined a four-pronged approach, including raising the price of carbon and a limit on emissions from coal-fired stations.

Mr Huhne said: "If you take today's average bill of about £500, by 2030 we'll be looking at £160 extra."