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UK: Energy bills set to soar

Businesses are facing the prospect of massive increases on bills for electricity and gas.

Soaring oil prices and EU regulations on carbon emissions are expected to result in a 40% hike in the price of electricity, and 25 % in price of gas.

The claims come from consultants John Hall Associates based on conversations with suppliers and feedback from those involved in negotiating new contracts.

According to the Daily Telegraph, they show costs for new supply contracts starting in October are likely to soar by between 32% and 41%, compared with a year earlier.

For contracts starting next April, the increase is put at 30-40%.

A John Hall consultant said: "This will be a considerable blow for businesses already struggling to control costs.

"Companies are obviously trying to resist the increases but there is little they can do".

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