BoE prediction means energy prices would hit all time high

uSwitch.com, the independent price comparison and switching service, warns that if today's prediction by the Bank of England that gas prices could increase by 15% and electricity by 10% comes true household energy bills will hit an all-time high of £1,279.

The increases would add an extra £148 onto the average household energy bill. Suppliers have already implemented one round of price rises that ended in March. These added 6% or £63 onto bills.

Tom Lyon, energy expert at uSwitch.com, says: "This is grim news for consumers. Two suppliers have already hinted at more price rises, but this warning from the Bank of England seems to bring a second round of energy price hikes a step closer.  Households are still feeling stretched by the previous increases that only finished a couple of months ago in March. If costs do increase as predicted the average duel fuel bill could hit a record high of £1,279 - this is over £100 higher than the last time energy prices peaked in January 2009.

"However, consumers can help to protect themselves from these increases. There are two ways of doing this - cut down on the amount of energy you use and cut down on the amount you pay. Fixed price energy plans are an option, but these often carry exit penalties as well as a premium for the peace of mind they offer.

"For those simply looking to make a saving without fixing, online plans are consistently the cheapest on the market. The difference between the cheapest energy plan in the market and the most expensive standard plan is £280 - this is a substantial saving and could make a real difference for those who are worried or struggling with bills."