Customers urged to switch to a capped tariff while they can

A second major utility company has raised prices seven days after money website Fool.co.uk's warned that cheap energy will run out by 30 July 2008.

Scottish Power has followed EDF Energy by withdrawing its capped tariff and has not offered a replacement. There are now only three capped energy tariffs left.

This follows predictions from energy comparison site Xelector that soaring oil prices will push up utility bills 20% by September. It expects another increase shortly after the New Year. Together, the combined price hikes will increase household energy bills up to 50% by next February.

Fool.co.uk maintains that British Gas, which is owned by Centrica, could raise prices when the parent company reports its first-half results tomorrow. We therefore urge households to act now by capping the cost of their gas and electricity prices without delay. By opting for a capped tariff, consumers will be protected during the term of the contract.

David Kuo, Head of Personal Finance at Fool.co.uk says; "We have gone beyond the stage of energy companies firing warning shots across the bows. Gas and utility bills are set to rocket unless you have taken out a capped-rate tariff.

"We urge anyone who has not taken one out to do so immediately. These deals may not be the cheapest tariffs on the market now, but in a few months' time they will look as cheap as chips.

"It is never possible to predict the future, but failing to switch to a capped tariff now is looking a gift horse in the mouth."