An ICM survey conducted on behalf of the charity found that nearly half of the 1,000 pensioners polled said they turned their heating down when not warm enough in an effort to save money.

The study also revealed that 2 million pensioners around the country are regularly going to bed when they are not tired just to keep warm.

Mervyn Kohler from Age UK was quoted in the Guardian as saying, ‘The figures are stark and show that people have been shaken rigid by the enormous rise in prices we saw in the second half of last year, and for individuals living on fairly straitened incomes, that hike in one of the two essential areas – the other being food – has really put the frighteners on our older population,’

She continued, ‘People who are cutting back on the amount of fuel they are using are jeopardising their health. They are going to end up exacerbating respiratory illnesses; they are going to end up isolating themselves in their own homes, feeling miserable sitting in a cold house without anyone coming round to see them. Because the house is too cold they get depressed.

‘In the end they are actually stoking up costs for one or another bit of our National Health Service as a result of starving themselves of fuel.’

The Age UK study found that 90% of the over-60s questioned were worried about the impact of higher energy bills, while 43% admitted to having turned their heating down when they were not warm enough.

Domestic fuel costs have risen by more than 100% since the beginning of the century, leaving many low-income households to choose between heating their homes and putting food on the table. A recent round of price cuts of around 5% to electricity tariffs by the big six power firms did little to stem the rise of fuel poverty in the UK. A household is deemed to be in fuel poverty if it spends 10% or more of its income on energy bills.

Consumer Focus estimated that up to a quarter of all households in England and Wales had fallen into fuel poverty by the end of last year after a round of double-digit price increases in the run up to autumn.

The coalition has a legal duty to end fuel poverty by 2016.

The charity released the results of new research carried out to coincide with the launch of Big Energy Week which runs from today until January 21. The study found that 43% of homeowners are concerned about covering their next gas and electricity bill and that half of all respondents expect the price of fuel to put pressure on their finances over the coming year.

CA helped more than 96,000 people who got into difficulty with fuel debt last year, but found that as many as one in three bill payers was unaware that help such as insulation grants was available from power providers.

Gillian Guy, chief executive of Citizens Advice, said: “We know hikes in prices have put extra pressure on people’s budgets at a time when money is already tight. Day in day out our Bureaux helping people who can’t afford their fuel bills.

“We’re worried that some people are struggling unnecessarily because they’re not on the best deal; live in homes that haemorrhage heat or are not getting all of the financial help available to them.”

The Big Energy Week survey also found that 53% of people were heating their homes less in an effort to cut fuel costs and that 71% of those who said their energy bills would put a strain on their finances this year also said they were worried they would not be able to pay their next fuel bill.

The figures were released days after four of the “big six” energy suppliers announced cuts to their prices. EDF Energy and npower announced 5% falls in their gas tariffs, while SSE said it would cut its gas prices by 4.5%. British Gas cut 5% from its standard electricity tariff with immediate effect last Wednesday. The reductions do little to compensate for the double-digit price hikes of 2011 and have left some analysts suggesting they may be a precursor to more rises later in the year, despite falling wholesale prices.

Energy and Climate Change Secretary Chris Huhne said: “We know that a lot of households are struggling to cope with rising energy costs. Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers. But we need to make sure consumers are aware of this and make it easier for them to take action to save money. That is why I am backing Big Energy Week. We want to get the advice and information out to as many consumers across the country as possible.”

Big Energy Week is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the government. It aims to promote ways consumers can save money on their fuel costs.

The consumer champion found that 90% of grievances against power firms were not taken to the energy ombudsman and that tens of thousands of complaints remained unresolved after eight weeks. Which? estimates that homeowners could be losing out on up to £4 million in compensation by not pursuing complaints.

Forty percent of consumers have a had a problem with a gas or electricity company over the past two years. Which? said this is a remarkably high number for an industry where very little should go wrong with the product itself once a customer has signed up

The majority of complaints from customers were about billing mistakes, inaccurate meter readings and missing bills. Nearly a quarter of those with a gripe failed to take any action, according to the Which? study.

Customers can lodge a complaint with the energy ombudsman for free if their power supplier fails to adequately respond to an issue raised within eight weeks or sends a deadlock letter saying it can do no more. Around 95% of complaints that reach the ombudsman are upheld. Seventy percent of these receive financial compensation.

Which? also published the results of its annual energy company satisfaction survey alongside its research into complaints. All of the “big six” power firms were rated poorly by customers, with npower, EDF Energy and Scottish Power performing the worst. The top spots in the poll were taken by smaller firms such as Good Energy, Utility Warehouse and Ecotricity.

Which? executive director Richard Lloyd said: “These findings reveal shockingly high levels of complaints and low levels of customer satisfaction in the energy industry, at a time when domestic bills have gone through the roof. Ofgem, the regulator, should publish the truth about the full level of complaints in this essential service. Energy suppliers should be held publicly accountable, on a regular basis, for putting right the problems their customers are reporting.

“It is a sign of the level of frustration with this industry that so many people have a problem but don’t complain, even when they could be missing out on compensation. It is important that dissatisfied customers complain directly to their supplier first. But if your supplier doesn’t sort the problem out, it’s worth contacting the energy ombudsman. The vast majority of complaints it receives are upheld, with an average compensation payout of £125.”

The Which? research was published on the same day EDF Energy announced a 5% reduction in its prices after Ovo Energy announced a similar move earlier in the week. Industry analysts predict EDF’s decision could result in the rest of the “big six” following suit.

Vincent de Rivaz, EDF’s chief executive, said: “What customers want more than anything else is fair, clear and transparent prices. We know they want action rather than words. That is why we are the first major supplier to announce a cut and were the last to increase prices.”

The tiny independent power firm – which has a customer base of around 70,000 – said the price reduction would save the average customer around £55 a year. The reduction, which is effective from today, means the average UK household will now pay £1060.77 per year on Ovo’s New Energy dual fuel tariff, against an average of £1194 for comparable tariffs with the “Big Six” providers, according to the energy supplier.

Ovo cancelled a planned price rise of 3.5% last November in reaction to falling wholesale prices.

The government has been urged to open up the energy market so smaller players like Ovo and newcomers find it easier to compete with the so-called “Big Six” power firms. EDF Energy, British Gas, E.ON, npower, SSE and Scottish Power currently control around 99% of Britain’s retail energy market.

Co-operative Energy, another minor player in the energy market, last year announced a price reduction of 3% to be introduced on February 1. Experts warned that larger suppliers are unlikely to cut their prices in reaction to the moves of their smaller competitors.

Stephen Fitzpatrick, Ovo Energy’s Managing Director said: “We’re committed to doing everything we can to offer new and existing customers the best possible deal.  Due to a recent decrease in wholesale costs, we are able to respond and pass on these savings to consumers, thereby giving them a cheaper and simpler alternative to the “Big Six”.

“January is always a challenging month for everyone’s bank balances and so we’re delighted to do what we can to help make paying for energy a little easier.”

Consumer Focus welcomed Ovo Energy’s move and urged other energy suppliers to follow suit.

“Customers will be glad to see that Ovo has reflected falling wholesale costs in the prices they are asked to pay. This is a market fundamental which must be reflected across the sector if wholesale costs continue to fall,” said Audrey Gallacher, director of energy at Consumer Focus.

“The gap between wholesale and retail prices remains a fault line for consumer confidence in the energy market.”

The National Pensioners’ Convention (NPC) said the government and the big six energy firms are failing to properly advertise the new Warm Home Discount (WHD) program that was introduced this year.

Under the WHD scheme, participating energy suppliers give a £120 electricity bill rebate to a specified group of their older customers on low incomes, known as the “core group”.

The program, which the government says will be worth up to £1.1 billion over four years, is initially only available to those who receive the guarantee credit element of the pension credit, although these criteria will be widened in following years. All of the big six energy suppliers are taking part in the scheme.

Energy firms participating in the program have the discretion to make the discount available to other low-income and vulnerable pensioner households known as the “broader group”, but the NPC is concerned that neither the government nor the power companies are doing enough to publicise the available money and that the program is confusing.

Dot Gibson, NPC general secretary said: “As winter approaches, it is completely unacceptable that the Warm Home Discount scheme appears to be a shambles. There has not been enough publicity about the scheme, it’s too complicated and pensioners are unsure whether they qualify for extra help or not.

“The cost of fuel is rising and the government’s cut to the winter fuel allowance means that pensioners need all the help they can get to keep warm this winter, yet neither the government nor the big six energy companies seem particularly bothered about letting people know what help is available. It’s no good simply relying on a message on a website, when the vast majority of older people don’t even own a computer.”

The NPC is calling for the big six energy companies to adopt the widest possible criteria for the broader scheme and open it to all new customers who are eligible. It also wants the government and energy providers to publicise the WHD scheme to all customers, especially those who do not have access to the internet.

Those pensioners who do have access to the internet can find information about the WHD program on the Directgov website.

Every company except Scottish Power recorded a rise in the number of complaints received, with French-owned EDF Energy posting a 91% year-on-year increase in the number of disgruntled customers it dealt with.

EDF’s poor service performance saw it become the first energy supplier to receive a zero star rating in the league table of energy firms – a dubious honour reserved for companies that receive 150 complaints or more per 100,000 customers.

The number of complaints received by EDF rose by 74% from the previous quarter.

The rise in the number of complaints received by energy firms coincided with inflation-busting double-digit price rises over the summer months.

SSE, formerly Scottish & Southern Energy, retained its five-star rating at the top of the league, while British Gas came in second place with four stars. E.ON and Scottish Power came third and fourth respectively with three stars each, followed by npower with two.

Consumer Focus raised concerns that Scottish Power and EDF Energy did not display the Consumer Direct contact number on letters to their customers, which could have impacted the number of complaints they received.

Adam Scorer, Director of External Affairs at Consumer Focus, said: “It is disappointing, but perhaps not surprising, that complaints on energy issues have risen at a time when energy bills are increasing. Energy companies have repeatedly said they want to rebuild consumer trust. Good customer service and complaints handling are key ingredients to building consumer trust but suppliers still have a long way to go.

“Complaints about EDF Energy over the summer have had a catastrophic impact on its rating. While system changes inevitably cause disruption to customers, this must be minimised. Its current complaints performance is unacceptable and the company must take further steps to tackle this.”

EDF said many of its problems resulted from the introduction of a new billing system at the beginning of the year which led to numerous billing and communication problems.

In a statement, the energy firm said: “Despite careful planning and the recruitment of over 700 additional customer service staff to protect our service levels to customers through the transition, our customer services operated to a lower standard between May and September. In particular, answering calls to our customer service agents took longer than expected.”
“As soon as delays occurred we recruited an additional 400 service staff, which naturally took time to become effective, and we slowed down our plan to move customers on to the new system to ensure service levels were stabilised and restored. The actions taken and investments made are paying off and the service to our customers is improving.”

The Trading Standards Institute (TSI) has urged consumers to be on the lookout for bogus telephone cold callers trying to offload plug-in devices they claim can reduce electricity costs by as much as 40%.

The TUI issued the warning after receiving more than 200 complaints about phone calls from the scammers. Fraudsters call up and claim to be from people’s energy supplier or working in partnership with them. They then offer the plug-in device, which they claim can substantially cut energy bills, for £99.

Ron Gainsford, TSI chief executive, said: “Consumers are warned not to use the product as they pose a risk of fire and electrocution and a safety recall has been issued for the items traced so far.

“Unscrupulous criminals are using the rising energy prices as an opportunity to lure in cash strapped consumers – elderly people seem to have been deliberately targeted.

“The number of complaints we are currently dealing with is bound to be only the tip of the iceberg.”

When trading standards had a number of the plug-in devices tested, it found they failed to satisfy electrical safety standards and did not deliver any tangible energy savings.

Sue Jones from Westminster trading standards said: “The address they give is that of a virtual office provider, the companies involved in these scams are not actually situated there - we believe the call centre they use is based abroad and the appliances appear to be distributed by a number of individuals in the UK.

“We know that these fraudsters have been duping consumers across the country into paying £99 for the energy saving device and have been told the caller always appears to be very credible by already knowing the consumers’ details, their energy supplier and sometimes some or all of the digits of their credit/  debit  card.

“Often consumers do not realise that they have been defrauded until they receive the dodgy looking device with instructions in broken English and the accompanying invoice which names an unknown supplier and often gives an American address.”

TSI advise anybody targeted by the fraudsters to contact Action Fraud on 0300 123 2040 or Consumer Direct on 08454040506.  They should also contact their bank to stop their debit/credit card being charged. If a device has been received they should not use it and dispose of it carefully.

Protesters from the Fuel Poverty Action Group carried a coffin from Parliament Square to the head offices of EDF Energy in a mock funeral procession, while activists from both Greenpeace and the National Pensioners Convention (NPC) staged a sit in outside the Commons.

Both were seeking to highlight the number of “excess” winter deaths in the UK after the Office for National Statistics (ONS) revealed that 25,700 people died last year as a result of cold weather. ONS data shows there is a 17% rise in deaths over the winter months compared to the summer. Around 10% of these deaths can be directly attributed to older people not being able to heat their homes adequately, according to National Energy Action (NEA).

Jenny Saunders, Chief Executive at NEA said: “This number of excess winter deaths was sadly expected. The figures emphasise that fuel poverty is killing our most vulnerable citizens. Last December was the coldest on record and the spells of severe weather combined with high energy prices had a devastating effect.

“We continue to have one of the highest excess winter death rates in Europe, higher than many of our colder Scandinavian neighbours. The Government needs to step up action that will end these shameful statistics and comprehensively tackle fuel poverty in the UK.

“They need to ensure that their upcoming energy efficiency programme, the Green Deal, fully delivers where it is needed most, improving the comfort levels of homes and providing affordable warmth to vulnerable households.”

The number of excess winter deaths remained broadly unchanged year-on-year in 2010-2011, and is unlikely to improve this winter after George Osborne cut the winter fuel allowance.

The yearly handout will now be limited to £200 for those aged over 60 and £300 for those aged 80. The previous government introduced a winter fuel allowance top-up that saw people over 60 receive up to £250 and those over 80 get up to £400.

Greenpeace and the NPC called on the government to reinstate the £600 million top-up scheme and said it was unjustifiable to make the cut in a year that will see average domestic gas prices increase by an average of over 16%.

Opening a Commons debate on pensioners and winter fuel payments, Nigel Dodds, leader of the Democratic Unionist Party, said: “It beggars belief that it’s OK to have this increase in each of the last three years but in this year, given the level of anxiety expressed about rising and extremely high levels of energy prices across the country, that the Government chooses to cut the extra payments for our senior citizens.”

The ‘Surviving Winter’ campaign, which was launched this morning by the Community Foundation Network with the support of Saga, calls on wealthier over-60s to hand an amount equivalent to their allowance to a charity that helps low-income pensioners heat their homes in winter.

The winter fuel allowance, which has been cut this year by the coalition government, is not mean-tested. This means it is paid to millionaires who may not even spend winter in the country as well as those struggling on a basic state pension. The government gives at least £200 in winter fuel payments to anyone over 60.

Some 25,400 older people died in the UK last year because of the cold, according to the Office of National Statistics, with as many as 2,700 passing away as a direct result of being unable to heat their homes adequately.

The scheme has been backed by a range of public figures including Sir David Jason, Sir Terry Wogan, Sir Michael Parkinson, Ann Widdecombe and Jonathan Dimbleby.

Ros Altmann, Saga director-general, said: “Some of our customers last year wrote to us to say they would like their winter fuel payments to help others less fortunate than themselves. With rising fuel costs and the government’s decision to cut the winter fuel payments this year, vulnerable older people are suffering a double whammy, so Saga is fully behind this new ‘fuel-anthropic’ venture, helping channel donations into the right hands.

“Of course, it need not only be pensioners who donate money from their winter fuel payments. We are offering all our over-50s customers a chance to help those in need to cope with soaring fuel costs through the winter by making a donation to this appeal.”

Peter Smith, external affairs manager for NEA, the campaign sponsor, said: “NEA is delighted to be supporting the Surviving Winter campaign. As the national fuel poverty charity, we are only too aware of the dangers of living in cold damp homes, and with winter approaching many people will be dreading the prospect of cold conditions and high energy bills.”

“Through the campaign, we hope to raise awareness of the 6.6 million UK households that are currently estimated to be in fuel poverty, as well as work with individual community foundations to deliver effective, tailored solutions that will permanently remove people from fuel poverty.”

People wishing to make a donation can go to the Saga website or contact their local community foundation.

Gas and electricity prices have risen by as much as 16% and 19% respectively since the beginning of the summer, prompting the industry regulator to launch a probe into how power companies operate. Last month, Ofgem announced the “big six” energy firms were making an average profit of £125 a year from each of their customers, a 733% increase on the £15 a head they were making in June, before the latest raft of price hikes took effect.

Despite strong words and an “energy summit” last month, the coalition government seem unwilling or unable to bring fuel costs down by increasing competition or forcing suppliers to be more transparent about their pricing. After meeting with the country’s six major energy suppliers, ministers advised consumers to shop around and insulate their homes – sound advice, but somewhat short of the solid measures poverty campaigners have been calling for to help vulnerable people trapped in fuel poverty.

Addressing the Commons in response to the energy summit, Caroline Flint, the shadow energy secretary, said: “The average family is now paying £1,345 per year just to keep the lights on and the house warm.

“People don’t have a choice about whether to consume energy or not. At the same time as more than a quarter of families are already struggling to afford their energy bills and more price rises are on the horizon, more families are worried about whether they will make ends meet. But energy companies are enjoying soaring profits.”

Speaking at the launch of a £30 million fund to help Britons keep warm this winter, the health secretary Andrew Lansley said there is a 20% increase in deaths in the winter in England every year. This is largely down to people in fuel poverty – those who spend 10% or more of their income on gas and electricity – being unable to heat their homes adequately. The Department of Health estimates the NHS spends more than £850 million a year treating the fuel-poor.

The situation is likely to worsen this year after George Osborne withdrew winter fuel allowance top-ups from millions of pensioners, leaving many with the stark choice between eating properly and heating their homes. More than 200 older people will die every day this winter because they will not be able to heat their homes, according to Age UK. The charity says that over a third of people in the UK aged 65 or over say they are dreading the cold weather this winter. This is higher than in Sweden.

You don’t need to live in one of the five million-plus households in England to be trapped in fuel poverty to worry about soaring fuel prices. The rate of increase in the cost of gas and electricity is outstripping the Consumer Prices Index measure of inflation by nearly four times in some cases. But as government action appears to be some way off and Ofgem are yet to report on the state of industry, it’s down to you to make sure you’re doing all you can to keep a lid on your fuel bills.

Switch suppliers

Changing your energy supplier is one of the simplest ways you can cut your fuel costs. If you’ve never done it before, you could save hundreds of pounds a year. Use price comparison sites to sniff out the best deal. Although dual-fuel deals will usually be the cheaper option, check single tariffs to see if you can make an additional saving by mixing and matching.

Opt for capped tariffs

If you think prices are likely to go up in the medium-term as appears likely, consider opting for a capped tariff.  While you’ll pay more in the short-term, you’ll be protected from future price hikes.

Get an internet-managed account

Signing up to an internet-managed account and paying by direct debit will reduce your bill even further. You can get cashback by switching through some comparison and cashback sites. While this can add to the amount you save, you should never base your decision on which provider to choose based on cashback alone.

Check the small print of your agreement with your current provider before you switch. If you’ve only recently changed supplier, you may have to pay a fee to get out of your contract.

Look at grants, discounts and loans

The government, energy suppliers, retailers, and installers often offer grants, discounts and loans to help you make your home more energy efficient. You may be able to apply to scrappage schemes to help finance a new boiler, or access funds to insulate your home.

Find out about programs you may be eligible for by visiting the grants and discounts database on the Energy Saving Trust website. The information provided is completely impartial and you’re under no commitment to buy.
You should also make sure you’re receiving all the benefits you’re entitled to, including any cold weather payments. You can check your eligibility by using the benefits advisorservice on the Directgov website.

Change your habits

Think about how you use your gas and electricity. Turn off the lights when you leave a room, make sure your heating isn’t on when it doesn’t need to be, and turn down your thermostat when it is. Put on another layer of clothing if necessary. Make sure all electrical items are not left on standby when not in use and switch to energy-saving lightbulbs. Replacing your electric appliances with energy efficient alternatives can also help you make big savings.

Act if you’re having trouble

If you’re having trouble paying your energy bills you should contact your supplier as soon as possible. They are required by law to offer advice on how to manage your debt and set up an affordable payment plan to pay what you owe. If you feel your supplier is behaving unfairly, you can submit a complaint to the Energy Ombudsman.

The regulator found the energy firm was in breach of regulations that set standards for the way complaints from consumers are dealt with.

Research conducted by Ofgem found npower failed to record all the required details of the complaints it received, did not inform customer they could take complaints to the Energy Ombudsman, and failed to put in place adequate policies and processes for dealing with complaints in an efficient and timely manner.

The move comes after the regulator fined British Gas £2.5 million in July for the same offence. Ofgem is currently investigating the way EDF Energy handles the complaints it receives.

Ofgem fined npower – which is owned by the German group RWE – £1.8m in 2009 for mis-selling after receiving complaints from customers about its doorstep sales team. The company recently increased its gas and electricity prices by 15.7% and 7.2% respectively.

A spokesperson for the firm said: “We are very sorry, we let our high standards slip on this occasion. A small number of processes were not correctly adhered to. Ofgem is now satisfied that all problems have been rectified and we are fully compliant with our obligations to our customers. We have zero tolerance for this type of issue and we’ll continue to work hard to make sure our customers are put first.”

Sarah Harrison, Ofgem’s Senior Partner for Sustainable Development, said: “Consumers have a right to expect that energy companies will comply with the standards. Npower failed to do so and although it took remedial action, it has incurred a penalty for failing consumers.

“Energy suppliers now have a golden opportunity to convince consumers that they can be trusted, by getting behind Ofgem’s sweeping reforms for the retail market. This is the quickest way of restoring consumer trust in an industry badly tarnished by poor supplier behaviour.”

Ofgem introduced new regulations to guarantee customers a minimum level of service when making complaints to energy suppliers in 2008. This was intended to complement the work of the Energy Ombudsman.

The Hills Fuel Poverty Review found that if fuel poverty accounts for 10% of all winter deaths – a conservative estimate – some 2,700 people will die as a direct result of being unable to afford gas and electricity to heat their homes this year. Less people are killed in traffic accidents.

Publication of the review, which was conducted by John Hills, director of the Centre for Analysis of Social Exclusion at the London School of Economics, comes a week after Ofgem revealed that energy companies are making £125 a year profit on each of their customers.

Fuel poverty is also contributing to thousands of cases of respiratory problems and sickness across the country in households that are forced to choose between heating their homes and eating.

Over four million households are expected to be officially categorised as fuel poor by the end of this year. Households are considered to be fuel poor if they spend over 10% of their income on heating their homes.

Poor households spent an extra £1.1 billion on heating in 2009 as a consequence of being unable to afford energy-saving

improvements, even before recent price increases. Those on low incomes and in the worst housing cannot afford essential investment to improve the energy efficiency of housing stock and combat climate change, according to the report.

Speaking at the launch of the review, Professor Hills said, “The evidence presented in my interim report shows how serious the problem of fuel poverty is, increasing health risks and hardship for millions of people, and hampering urgent action to reduce energy waste and carbon emissions.

“This review confirms that the way in which the problem is currently described in law is correct: people are affected by fuel poverty if they are living on a lower income in a home which cannot be kept warm at reasonable cost.”

Audrey Gallacher, Director of Energy at Consumer Focus, said, “Many of our poorest pensioners, families and disabled people, put their health at risk by having to choose between heating their homes or putting food on the table this winter. This is one of the most pressing and neglected concerns facing the government’s energy strategy.

“The Hills review is right to seek a definition of fuel poverty that will help to support to those who need it the most. The review highlights just how far away the Government is from its target to end fuel poverty. The challenge of tackling fuel poverty is immense. We welcome the Hills review as an important way in which the government and others can focus their action to greatest effect.”

The regulator announced that the average amount energy suppliers make per customer rose by 733% from £15 in June after a raft of price hikes across the industry.

Ofgem said the average dual-fuel bill has increased by £175 and will reach £1,345 in November.

The watchdog said wholesale prices had risen by 40% to £115 per customer over the past year and could increase further in the next few months. Rising wholesale prices are often cited by suppliers when they increase their charges.

Although Ofgem predicted that profits were likely to fall back to £90 per customer next year, it confirmed that it will press ahead with plans to force suppliers to introduce simplified tariffs and easier ways for customers to compare the market.

Consumers currently face a bewildering array of 400 tariffs to choose from. Ofgem plans to set a fixed standing charge on top of which companies will be able to offer a variable unit price. This would allow consumers to compare suppliers on unit price alone.

Ofgem’s Chief Executive Alistair Buchanan said, “When consumers face energy bills at around £1,345 they must have complete confidence that this price is set by companies competing in a fully competitive market. At the moment that is not the case.

“That is why a radical break with the past is needed. Ofgem’s tariff reforms offer the quickest way to create a market where consumers can have confidence that prices are set by effective competition. Suppliers have told Ofgem they want to restore confidence in the industry and now they have the chance to do so.”

“With £200 billion of investment needed to overhaul Britain’s energy industry and the pressure this and rising energy prices puts on bills, consumers rightly demand a major improvement in the way suppliers behave towards them.”

A spokesperson for Consumer Focus said, “We welcome this first wave of reforms to hit the energy market. Consumers are faced with a thicket of energy tariffs that can seem designed to confuse all but the most persistent and numerate consumers. More than 60 new tariffs have appeared so far this year, despite all the pressure for fewer and simpler tariffs.”

“While these measures are welcome, we wait to see the response of energy companies. Customers need all energy companies to decide that their own best interests are served by being open and fair with consumers. Too often the opposite has been the case.”

“Energy suppliers need to turn the ship around and start working for their customers not against them. That this news comes at the same time as increased profits will just deepen the mistrust that consumers feel toward their suppliers.”

The move comes after consumer groups and an all-party Commons Energy and Climate Change Select Committee raised concerns about the tactics employed by door-to-door sales people to persuade householders to switch energy suppliers.

The committee heard that up to 40% of consumers who agreed to switch provider on their doorstep did not end up with a better deal and that some actually ended up worse off.

The committee also heard evidence that doorstep energy sales people intentionally target the vulnerable.

Ofgem has recently been investigating four of the big six energy companies for breaking trading regulations with regard to doorstep selling. Scottish & Southern Energy was convicted of allowing its doorstep representatives to use “misleading” scripts in May, which prompted it to introduce a temporary ban on the practice.

EDF Energy and npower currently have their doorstep operations on hold and are expected to follow suit in the near future.

Ian Peters, Energy Managing Director at British Gas said, “Since we announced a halt to unsolicited doorstep selling, feedback from our customers and staff has been very encouraging.   Many of our customers choose to do business over the telephone or online, but there is also still a very real demand for face-to-face energy advice among customers – as long as it’s delivered at a time and place that’s convenient for them.

We will continue to work closely with our current sales-force and their representatives to provide support, and help identify potential alternative opportunities in our new community sales teams.”

Audrey Gallacher, Director of Energy at Consumer Focus, said, “This is a welcome further announcement from British Gas in response to our call for action on doorstep sales. This move by the UK’s biggest supplier heaps even more pressure on other firms to follow suit.

She added, “People feel pressured to switch on the doorstep and thousands have lost out by moving to a worse deal. Energy customers have made it clear that they don’t want or need this type of unwanted sales technique, which ambushes them at their home. If consumers are to be sold to in their homes they rightly want it to be on their terms and at their request.

We want to see other responsible suppliers to listen to their customers and follow in these footsteps. We need to see an industry-wide end to cold-call doorstep sales, otherwise continued mis-selling will drive customer distrust even further and trust in key government energy schemes could be damaged.”

Consumer Focus has been leading a campaign to persuade energy suppliers to voluntarily end doorstep sales, and has called on Ofgem to ban the practice if they refuse to do so. It would like the regulator to end all cold-call doorstep sales in the home by energy suppliers, ensure that customers have access to impartial advice, and compel suppliers to inform consumers if a cheaper product is available.

The move makes the firm the last of the “big six” energy suppliers to introduce double-digit price hikes that have already helped push the consumer prices index to a near three-year high of 4.5%.

The company said it held out for as long as possible before raising its prices but now had to “reluctantly” pass on some of the costs of investing in infrastructure rise in wholesale energy prices.

The typical EDF dual-fuel customer will pay an extra £120 a year when the changes are introduced, meaning the average bill will rise to £1,165.

British Gas, Scottish Power, Scottish & Southern Energy, npower and E.On have all announced price rises of up to 18% over recent months.

Vincent de Rivaz, Chief Executive of EDF Energy said: “We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers.”

“However, unlike some other suppliers we have been able to give protection to our customers, particularly for their electricity consumption, because of our choice to invest in low carbon nuclear generation, which enjoys stable costs compared to gas and coal and has had a strong performance this year.”

Tom Lyon, an energy expert at uSwitch.com, told the Telegraph: “The sad fact is that you cannot have two consecutive rounds of energy price hikes in less than a year without seeing casualties.”

The recent spate of price increases has prompted the industry regulator Ofgem to launch an investigation into pricing by energy suppliers.

The energy giant said 10% of households are missing out on savings of up to £390 a year because they “can’t be bothered” to have cavity wall and loft insulation fitted. Other excuses for not having the work carried out included having too much clutter in the loft, not having a ladder, and not knowing how to go about it.

Some 17% of respondents said they had not had their homes insulated because of the costs involved. E.ON said it can cost from as little as £99 and can pay for itself in just four months.

The survey of 2,000 people, carried out on behalf of E.ON last month by OnePoll, found that over half of the UK (57%) had no idea that such large savings were possible.

Kevin Bryant, Energy Fitness Instructor at E.ON, said: “When we feel the cold, it’s very tempting to turn on or turn up the heating, but there are other long-term solutions which can make a big difference and help you save money on your bills.

“With a quarter of heat lost through uninsulated roofs and a third through uninsulated walls, installing cavity wall or loft insulation is one the best long-term approaches you can make to getting your home more energy fit. It’s easy. Just give us a call and we’ll make sure everything is taken care of from measuring up to the installation itself.”

The energy regulator Ofgem has written to the big six utility companies after being passed a number of customer complaints by The Times newspaper which allege suppliers billed for units used before price hikes at post-increase rates.

A number of Times readers complained that when they provided meter readings after paying an estimated bill, any additional units used were charged at the higher rate.

An Ofgem spokesman told the Times: “We have written to suppliers yesterday asking each of them to provide details of the approach they take to apportioning price increases and an explanation of the checks they employ to ensure accuracy.”

“We also want to understand the way in which estimated and actual bills are reconciled.

“We want suppliers to explain what mechanisms they use when prices are raised to ensure that consumers pay the higher price only for units consumed following the price increase,”

Richard Lloyd, executive director of consumer group Which?, said: “It’s good that Ofgem are looking to tackle this, but the main problem is that energy tariffs and billing are so complex it’s often impossible for customers themselves to work out what they should be paying.

“If energy companies were forced to offer simpler tariffs it would be much easier for consumers to work out if they are paying the right price. That might even help the companies regain some consumer trust.”

The news comes in the same week that npower became the fifth of the big six suppliers to announce price rises.

Which? advised consumers to submit meter readings to their energy company on the day price rises are introduced to avoid units used before the hike being charged at the higher rate.

The company, which recently reported a doubling of its profits in the first half of the year, said it will increase gas prices by an average of 15.7% and electricity by 7.2% from 1 October. The price hikes will cost the average customer an extra 37p a day or £135 a year.

EDF is now the only company among the big six players yet to hit its customers with price increases after British Gas, E.ON, Scottish Power and Scottish & Southern Energy all announced double-digit rises over the past few months.

Kevin Miles, chief commercial officer at RWE npower said: “I know it hurts everyone when we put up prices and I wish we didn’t have to. Although our half year profits were better than last year, they do not begin to match the billions we are investing in energy for the future.

“With reduced quantities of North Sea gas, we are now forced to buy energy on the volatile global wholesale market.

“World events have pushed up prices and we believe this trend will continue. In the UK we have also seen rising distribution and network charges, and further environmental costs but we have still managed to keep our increases lower than those announced by any other major supplier.”

The hike comes days after supermarkets embarked on a petrol price war following dramatic falls in the price of oil.

Richard Lloyd, chief executive of the consumers’ association Which?, said: “The Bank of England has predicted that rising utility bills will drive inflation to 5% by the end of the year, which will put more pressure on already squeezed households,” he said.

“It is critical that npower and all suppliers do more to help customers cut their energy bills – whether that is by getting onto the cheapest tariff or making their homes more energy efficient.”

The company, Britain’s largest supplier of gas and electricity, said the 400 staff affected by the trial stoppage would be redeployed in advisory roles.

The move comes after Scottish and Southern Energy (SSE) ended its door stop sales rounds after criticism from consumer groups and MPs.

A recent investigation by Consumer Focus found that householders who switched energy suppliers through door-to-door salespeople were often left no better off. Some even found themselves out of pocket.

SSE, EDF, ScottishPower and npower are all currently being investigated by Ofgem over allegations their doorstep sales staff used subterfuge to encourage people to switch.

Richard Lloyd, executive director of Which? said: “It’s good to see British Gas acknowledge its customers’ strong feelings on this. Many people have told Which? that they really dislike doorstep sales and, until the practice ends for good, the nationwide distrust of energy companies will continue.

“We want the rest of the industry to follow the lead of British Gas and SSE by stamping out pressure selling on the doorstep.

“This will count for little if it is just a temporary suspension or if suppliers simply switch to other forms of cold calling for the hard sell.

“Energy companies must now focus on making it easy for everyone to get access to the best domestic deals, which is more important than ever at a time when people’s personal finances are under so much pressure.

“They should make a start with the millions of people in the UK who have never used the internet and so miss out on the cheapest rates,” Mr Lloyd told the BBC.

Announcing the move, Ian Peters, a managing director at British Gas, said: “Doorstep selling, in its current form, is no longer a sustainable way to engage or build a relationship with customers. We want the energy advice we give our customers to be trusted and delivered at a time and place that is convenient to them.”

The German utility company said last Friday that its gas and electricity prices would rise by 18.1% and 11.4% respectively from 13 September as it emerged that wholesale costs had fallen to their lowest point since January.

Gas prices have fallen by 22% and electricity by 19% since their March peaks as a consequence of a slowdown in global demand.

All of the firms that have announced price rises to date have blamed rises in the cost of wholesale energy.

Wholesale day-ahead gas prices dropped to their lowest point of the year two days before the E.ON announcement, at 49.9p per therm, according to reports in the Sunday Telegraph. The paper said electricity prices also sunk to a year low, at £45.2 per megawatt-hour on Wednesday.

Omar Rahim, of Energy Trader Daily, said: “The wholesale electricity and gas markets have fallen consistently since March, this is not something that has happened suddenly.

“It’s ironic that on a day when suppliers are again raising their prices, gas prices are at a year low and electricity prices are also at multi-month lows.”

Campaigners have repeatedly called for the energy industry to be referred to the Competition Commission for its apparent haste to increase prices when wholesale costs rise, and reluctance to pass on savings when prices go down.

Responding to E.ON’s price rises, Mike O’Connor, Chief Executive of Consumer Focus, which is calling for energy firms to improve transparency so consumers can know whether their bills are fair, said: “Yet another price rise will leave the average energy bill weighing in at £1250 a year. Many consumers worry how they will afford to keep their homes warm this winter given other price rises and flat or falling incomes. Four of the Big Six have now raised their prices by similar amounts.

“Customers need to know whether these increases are warranted. Customers will feel they didn’t get the benefit when wholesale costs were low. Wholesale costs are around a third lower than their 2008 peak yet consumer prices have reached an all-time high.

“Ofgem has said it is prepared to refer the energy market to the Competition Commission if necessary. That is welcome but the regulator must be prepared to act if it can’t say for certain whether prices are fair.”