GAS prices are likely to soar, then remain high, it was reported.

Channel Four News said it had seen an internal report for the company Centrica which suggested gas prices could rise by 70%.

Jake Ulrich, managing director of Centrica Energy, told the programme: "I think it is going to hit people hard."

He admitted that gas price rises were likely to lead to a "potentially significant" rise in the number of people in fuel poverty and predicted people would have to change their habits to deal with higher prices.

"I do think we will see people change their behaviour, I think people will use less energy and I hate to go back to the Jimmy Carter days in the US but maybe it's two jumpers instead of one.

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

Gas prices are likely to remain high in the foreseeable future, he said. "The pressure is going to be upwards on prices for some time."

Production

He added: "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 in the future."

Energy Retail Association chief executive Duncan Sedgwick said: "Undoubtedly there is pressure on prices at present, with the price of oil and wholesale gas rising so significantly. This has clearly led to a lot of speculation on how retail prices will be affected.

"Ultimately, Britain is no longer an energy island and we are much more exposed to the global energy markets than ever before.

"It looks like the era of cheap energy is over. However, if you are worried about paying your energy bills it is very important that you speak to your energy supplier without delay and find out what assistance may be available to you."

According to the report, commissioned by Centrica, an annual domestic gas bill could cost over £1,000 within the next few years.

Transformation

John King, managing partner of Eclipse Energy Group, said: "This report signals the significant change which the UK will go through over the next few years as the price of the UK gas market becomes influenced by factors across the globe such as oil, coal, LNG and CO2 prices."

Cassie Higgs, National Consumer Council energy expert, said: "The energy companies could do more to shield vulnerable people from the worst effects of rising energy prices."

"An effective response would be for the companies to offer low-cost 'social' tariffs to vulnerable households, such as low-income families and elderly people. Some energy companies are doing well in this area, but others are offering schemes that are inadequate - often rationed and applied inconsistently."

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

"Price rises on this scale would mean well over three million pensioner households - more than one in three - would be in fuel poverty. It is totally unacceptable that because of price hikes many older people may feel forced to cut back on their heating, which could put their health at risk" he said.

What do you think? Have your say.