Domestic energy prices are predicted to rise by as much as 15% with the arrival of the new year.
Wholesale energy prices, which have been rising steadily, caused British Gas to raise the price of its tracker tariff this month. On December 14, npower followed by increasing its wholesale price tracker by 17% for gas and 13% for electricity. 

Karen Darby from SimplySwitch, the price comparison and switching service, said 'Historically, when one of the big suppliers increases prices, the others are quick to follow'.

Analysts are now predicting price rises of around 15% early in 2008, which will forced customers to pay an extra £131 per year in energy bills.

British Gas owner Centrica said 'the high wholesale prices will, if sustained, create a more difficult environment for retail energy suppliers in the UK going into 2008'.



'With petrol prices rising, the cost of mortgages still high and the inevitable financial hang-over from Christmas, householders will really feel the pinch early in the new year'.

To compare the cheapest deals visit simplyswitch.com.