Families should brace for a further £100 rise in their energy bills within the next year, official figures suggest.

The independent economic watchdog said higher energy costs would contribute to the rising cost of living, mostly driven by rising wholesale electricity and gas prices.

It said green taxes and other environmental policies would probably add two per cent to electricity bills and 0.5 per cent to gas bills annually until the year 2020.

Energy companies …. blame some of the rises on the need to invest in new green power.

Yesterday, the head of SSE, one of the six major energy companies, warned that Britain is facing the possibility of black-outs within the next three years because the country needs more electricity generation.

Ian Marchant, the chief executive of gas and electricity firm, suggested the Government has failed to prepare adequately for the closure of many of Britain’s coal plants by 2015.

“The government is significantly underestimating the scale of the capacity crunch facing the UK in the next three years and there is a very real risk of the lights going out as a result,” said Mr Marchant said.

Alistair Buchanan, the head of Ofgem, last month said households must prepare for a sharp rise in energy bills within two years as Britain is likely to come “dangerously” close to power shortages at this time.

Energy bills to rise £100 next winter, official forecasts suggest – Telegraph