Gas Bills Could Rise by up to 70%!!

The Telegraph reports today that gas bills could rise by 70 per cent to hit more than £1,000 over the next few years because of soaring global oil prices, according to a report produced by analysts on behalf of British Gas.

The report, written by Eclipse, a well-respected group of Norwegian energy experts, makes clear that Britain faces an acute shortage of cheap energy. Consumers, who have already seen their energy bills shoot up by 15 per cent this year, will have to get used to permanently high prices, the report warns.

Oil has risen from below $100 a barrel to touch an all time high of $147 a barrel last week, as demand from China and India combined with fears of a new conflict in the Middle East sent the price upwards. It is estimated that Britain will import 40 per cent of all the gas it needs this year. The report calculates, based on oil staying at roughly $140 a barrel, the cost of gas in the UK would increase by 70 per cent, "over the next few years".

The report adds: "This would raise annual gas bills for a typical domestic customer from around £600 to over £1,000 per annum – if oil prices rise to above this level then this would lead to further increases in gas bills." The six major energy firms have already increased both their gas and electricity tarrifs this year, by an average of 15 per cent. Experts forecast that bills will have to rise at least once more this year and could go up on two separate occasions.