The latest utilities price hike by EDF Energy heralds the end of an era of cheap energy, uSwitch has suggested.

Commenting on the cost rise - amounting to a 22 per cent increase for gas and 17 per cent for electricity - the price comparison site said that other major suppliers will soon follow suit, possibly with the introduction of even higher tariffs. As such, it warns that consumers can expect hikes of up to 40 per cent before the end of the year. In the event of this happening, the average fuel bill paid by UK households could come to 1,467 pounds.

And although such an amount was described as “eye-watering”, the aggregator also warned that the fuel price misery may not end there. According to an independent study commissioned by British Gas owner Centrica, the average gas bill could reach more than 1,000 pounds in the next few years.

For those who found themselves struggling after the last round of hikes, taking out a debt consolidation loan may prove an effective way to manage repayments. By spreading financial commitments over a longer period, consumers may find that this type of loan puts them in a better position to survive the upcoming slew of increases.

Indeed, uSwitch has warned that for many, the demands that energy places on monthly outgoings may soon enter uncharted territory. It noted that if the 40 per cent hikes do go ahead, Britons will have suffered a record 66 per cent increase in the cost of household energy in just 12 months. The firm explained that while customers on a fixed-price plan are not affected by this current round of hikes, the news may not be received well by the 5.5 million customers on standard plans who are sure to feel the impact in the coming months.

Commenting on the announcement, Ann Robinson, director of consumer policy at uSwitch, said: “After weeks of speculation and warnings, the axe has finally fallen. Although EDF Energy is the first supplier to succumb to the inevitable, this is not going to be a unilateral move … The days of cheap energy are over - today’s move means we are another step closer to seeing the largest ever increase in household energy bills in one year … If industry insiders are correct and the average energy bill hits 1,467 pounds by the end of 2008 then spending on energy will account for five per cent of the average household’s net income.”

For those consumers who are looking to reduce their reliance on energy as utlity costs soar, taking out a secured loan may prove an effective way to make significant efficiency improvements to the home quickly in order to limit exposure to spiralling energy costs as the winter approaches. Indeed, it would seem that a growing number of Britons are keen on improving their green credentials. According to recent research by Tesco, 83 per cent of the population already recycle household waste in an effort to go green. Meanwhile, 76 per cent had installed energy-saving light bulbs in their home.

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