Energy bills increase

Home owners received another blow to their budgets after energy giant Powergen announced that energy bills for their customers are to rise by as much as 24%.

Powergen who have approximately six million customers in Britain, blamed wholesale gas costs for the rise in electricity bills of 18.4% and gas of 24.4%.

The increases, which come into force on 10th March, are the largest in Powergen's history. They add £56 to an average annual electricity bill, with gas customers facing an increase of £107.

They are the latest in a series of price rises facing householders in the United Kingdom. Consumer groups warn that bill payers are now facing the choice between "putting food on the table and staying warm".

Water bills issued by United Utilities have already increased by 8.4%, with further rises expected in coming years.

British Gas announced a 22% rise earlier this month.