Centrica set to hike energy rates

Money website Fool.co.uk is urging homeowners to act swiftly to avoid punishing energy price rises. This follows predictions from energy comparison site Xelector that the rocketing price of oil will push up utility bills 15% to 20% by September.

It expects another increase of 20% shortly after the New Year. Together, the combined price hikes will increase household energy bills up to 50% by next February.

However, Fool.co.uk believes the price rises could happen as early as this month. It hinges on whether Centrica, which owns British Gas, can appease shareholders when it reports first-half results on 31 July. When British Gas increases prices, others are likely to follow.

Fool.co.uk is urging households to act now to cap the cost of their gas and electricity prices. By opting for a capped tariff, consumers will be protected during the term of the contract.

David Kuo, Head of Personal Finance at money website Fool.co.uk, says: "Capped-rate deals may not be the cheapest tariffs on the market, but they will look a bargain in a few months' time.

"When comparing capped deals, choose one that last the longest. It may not be the lowest in price, but the savings it will bring over the long term will outweigh the initial expense.

"Energy prices are rising and are likely to remain high for some time. However, opting for capped tariffs is more than taking a bet on the direction of energy prices. It is knowing for certain how much your outgoings will be for the term of the deal."