RISING energy prices may force one in three North-East businesses to make redundancies, a survey has revealed.

The figures also show that two-thirds of the regions firms believe that nuclear power stations are the answer to Britains escalating energy crisis.

The poll, carried out by the North-East Chamber of Commerce, surveys the effect of rising gas and electricity on businesses.

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

As the cost of energy rockets, the UK is on the verge of becoming a net importer of energy for the first time.

The impact on businesses of utility price hikes forced nearly one in three to raise their prices while one in five changed supplier.

Working practices have changed for one in six businesses although just one in twenty have resorted to job cuts. But one in three warned that if energy price continue to rise, the result will be job losses.

Maggie Pavlou, NECC president, said: "The North East economy has record levels of people in employment and the outlook from our members is extremely positive, particularly among manufacturers. We shouldn't undermine it by letting the energy situation spiral out of control."

The sharp price rises have prompted 61 per cent of respondents to take steps to improve energy efficiency, and nearly 80 per cent believe the Government should encourage a greater use of renewable energy sources.