Gas bills will rise by 43 per cent in the next 12 months and electricity by 21 per cent, an average £360 per home, because of a sudden surge in market prices, industry experts are warning.

Wholesale gas prices, the prices energy companies buy at, soared to a record high on Friday, taking the increase since the beginning of the year to 76 per cent.

To restore the balance between wholesale prices and those that householders pay, the average gas and electricity bills a year will have to increase to £1,410, almost £500 more than a year ago.

'The last time wholesale gas prices broke above retail gas prices was three years ago, in June 2005,' said Joe Malinowski of TheEnergyShop.com. ... Read full article