The big price rises will come due to increasing wholesale costs, an analyst has said.
Gas and electricity bills could be subject to 40 per cent price hikes, the Times reports.
Energy issues adviser John Hall, who provides services to 15 per cent of the consumer gas and electricity market, said that the UK's "big six" firms - including market leader British Gas - would implement the price rises in order to maintain their margins and placate shareholders.
The move would follow significant price increases on the wholesale markets: crude oil hit an all-time record of almost $140 per barrel on the exchange this week, while gas purchased by energy firms has also increased in price three times over across the past year.
Commenting on the recent price movements, Mr Hall said: "Unless there is a dramatic fall in oil prices, that is the scale of increase we are talking about to ensure that energy companies keep their margins." Accordingly, the analyst is predicting that UK energy firms will introduce staggered bill rises in 2008, with hikes to come in the summer and late autumn/early winter.
The comments came as a Labour MP launched a withering attack on gas and electricity regulator Ofgem, calling it a "toothless tiger" and accusing it of not doing enough to protect consumers from price rises. Lindsay Hoyle made the comments to Ofgem chief executive Alistair Buchanan at a parliamentary committee hearing yesterday.
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