£1,000-a-year for gas bills

Gas prices are set to soar and then remain high, with the average annual bill likely to hit more than £1,000 within the next few years.

Today's grim warning comes in an independent report commissioned by British Gas owner Centrica, which says prices could increase by up to 70 per cent.

Jake Ulrich, managing director of Centrica Energy, said gas price rises were likely to lead to a "potentially significant" rise in the number of people in fuel poverty.

He also predicted people would have to change their habits to deal with higher prices.

He said: "I do think we will see people change their behaviour. I think people will use less energy – maybe it's two jumpers instead of one.

"I think people will change the temperature they keep the house at, they'll be more cognisant of energy waste, they'll buy better appliances."

Gas prices will continue to rise for some time, he said.

"We're part of a world economy and I don't think we can rely on UK production or cheap gas, cheap energy of any sort any more.

"I think it's a reality, not only in the UK but in Western Europe and North America, energy is going to become relatively much more expensive."

Gas and electricity watchdog Energywatch called on the Government to act now to reduce the pressure on wholesale gas prices and force the industry to deliver affordable energy for Britain's poorest consumers.

Gordon Lishman, director general of Age Concern, said that the rapid increase in energy bills was hitting pensioners particularly hard.

He said they were forced to cut back on heating.