Fuel bills will carry on rising, say MPs

FURTHER increases in gas and electricity bills are 'inevitable'. Consumers were warned today there is no prospect of a reversal of last year's dramatic surge in energy prices.

Since the start of last year, gas bills have risen by an average of 20% and electricity costs by 15%. This has added about £100 to the bills of a typical household.

A report from the Trade and Industry Select Committee of MPs said gas prices were 'likely to remain high' over at least the next two years, partly because of declining production from the North Sea and other UK gas fields.

The committee stopped short of accusing energy companies of profiteering but said a windfall tax should be 'carefully considered'. It also urged suppliers to donate money to help alleviate the impact of the price rises on the poor.

At least 200,000 households were unable to stay warm in the winter as a direct result of the higher bills, although some estimates put the figure at 500,000 or more.

Electricity prices have risen because most of Britain's power generating plants are now fuelled by gas.