Brits unable to cope with future energy price hikes

Speculation energy bills could rise by 40 per cent before the end of the year will not be welcome news for 86 per cent of Brits who say they could not afford to take a price hike.

A poll from price comparison site moneysupermarket.com found two in five people (40 per cent) are already finding it hard to pay their energy bills and could not afford a further price rise. Almost half of Brits (46 per cent) are only just managing to cover the cost of their gas and electricity and would find it difficult to pay more.

Worryingly, just one in seven Brits (14 per cent) said they could still afford their bills if energy prices rise again.

Paul Schofield, head of utilities at moneysupermarket.com, said: "With price rises on the horizon it is even more important to get on the best value tariff for their area and usage. At a time when people are tightening their belts the prospect of energy price hikes is a daunting one - especially as only one in seven of us could afford more expensive bills.

"Price hikes of 40 per cent will hit those languishing on standard tariffs harder than anyone else - meaning their bills could exceed £1,400 a year. However, these customers have the option to protect themselves against any increases by "fixing" their bills now until the end of 2009. On average, there is only a 2p a year difference3 between standard and fixed tariffs so customers should have no excuse for not protecting themselves against future increases.

"I urge Brits to shop around for the best deal - not to waste their hard-earned cash paying over the odds for energy bills - especially as they are set to rise."