NUCLEAR power is the key to solving Britain's future energy needs, according to two-thirds of North-East businesses.

Only one in ten of firms polled by the North-East Chamber of Commerce (NECC) believe the nuclear option cannot fix the current energy crisis.

The response is a major indicator as to the depth of concern among the region's companies about the shift in energy resources that have left the UK on the verge of becoming, for the first time, a net importer of energy.

More than 70 per cent of respondents said their companies had been affected by rising energy prices, with more than half predicting the costs would constrict business growth.

Gas prices, in particular, have rocketed, with 65 per cent of firms experiencing double digit rises and more than eight per cent seeing their gas bills more than double.

The impact of utility price increases has forced nearly a third of firms to raise their prices while one in five has changed suppliers.

One-sixth of respondents said they had changed their working practices but only five per cent resorted to job cuts. However, one in three warned that sustained energy price rises would result in job losses.

Maggie Pavlou, NECC president, said job losses could be on the horizon if the problem was not solved.

Meanwhile, rising costs have prompted almost two-thirds of respondents to take steps to improve energy efficiency. Nearly 80 per cent believe the Government should encourage a greater use of renewable energy sources.