Woe on the way as energy bills set to rocket to £2,000

Household energy bills will top £1,500 by next year and almost £2,000 by 2017 if prices continue to climb at inflation-busting rates.

At the moment the average combined cost of gas and electricity is £1,400 a year more than double what it was in 2005. But industry analysis suggests it could jump to £1,500 next year before eventually hitting a whopping £2,500 in 2020.

The news is a further devastating blow to families struggling to heat their homes. It comes after David Cameron’s official spokesman told Britons to put on jumpers to keep warm and the SNP said power bills would be slashed in an independent Scotland.

Mark Todd, director of the website energyhelpline.com, which conducted the research, said: “The energy market is in a deepening crisis. Prices have been rising astronomically and the politicians appear to have lost control of the market. If prices continue to climb at the average of this year’s rises so far, 8.7%, they will hit £2,500 a year by 2020. This will mean prices have trebled since the beginning of 2008.

“Every year transmission costs, government taxes, and supplier profits seem to rise. With wholesale costs increasing too this is creating a toxic cocktail of runaway prices and unaffordable bills. Energy customers are the ones getting caught in the middle. With wages barely rising, they are increasingly unable to heat their homes. Many are having to turn down or even turn off the heating as they face the horrendous choice of whether to heat or eat. And the crisis this winter looks set to be even deeper than in previous years.”

On Thursday British Gas announced price hikes of 10.4% for electricity and 8.4% for gas. Average dual-fuel bills will rise from £1,321 to £1,444-a-year, it said. The firm’s north of Scotland customers were hardest hit with prices going up in the region by a whopping 11.2%. The changes take effect on November 23.

This British Gas price rise followed an announcement by SSE that it plans to put up its prices by 8.2%.

Last week we revealed how SSE boss Alistair Phillips-Davies was living in a plush £1.8m mansion in the west of Edinburgh. It’s now emerged his British Gas counterpart, Sam Laidlaw, lives in a £5m mansion in the Cotswolds, where he spends thousands every year heating an outdoor swimming pool.

Energy Secretary Ed Davey is now demanding an urgent meeting with British Gas over its claims a steep increase in the Government’s green levies were behind its price increases.

Meanwhile campaigners last night called on customers to fight for a cheaper deal. Mr Todd added: “Switching is really not that hard and the great tragedy is so few do it due to a misplaced fear or a belief it will be too much hassle.”

Fed-up householders can switch energy suppliers by calling 0800 074 0745 or visiting energyhelpline.com.