THE region’s largest energy supplier yesterday announced a major price rise, sparking warnings that the elderly and vulnerable face a long, cold winter.

Npower, which has 500,000 customers in the North-East, said it is increasing its gas prices by an average of 8.8 per cent and electricity by 9.1 per cent. The news came only hours after British Gas confirmed its prices will rise by six per cent, putting an extra £80 on to a typical annual dual fuel bill for its 8.5 million customers.

Chancellor George Osborne last night urged energy firms to reconsider price rises, saying the Government has a range of schemes to help people reduce their bills.

But npower’s chief commercial officer, Paul Massara, said one of the reasons for the increase is the cost of implementing Government energy policy, which he said was expected to double next year compared to 2011.

“We support moves to reduce CO2 emissions, but new government schemes will mean that energy bills will rise,” he said.

“We must make sure that they provide value for money and that people understand how they will be affected.”

He added: “There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet.

“But the costs of new statutory schemes, increases in distribution charges and the price of gas for the coming winter are all being driven up by external factors, for example government policy.”

The price rise from npower will come into force on November 26 and, according to Consumer Focus, will result in a typical dual fuel customer paying £1,252 by monthly direct debit. The figure for cash or cheque is £1,357.

Audrey Gallacher, director of energy for Consumer Focus, said: “We need much more focus on the big steps that Government and the regulator can take to insulate consumers from the effects of growing energy costs.”

Councillor Carl Marshall, Labour member of Durham County Council for the former pit town of Stanley, said the rises would make life harder for many in the North-East.

He said: “I’m dealing with residents on a weekly and sometimes daily basis who are struggling to make ends meet.

“I was talking to an elderly resident and, because of the summer we have had, he couldn’t afford to put his heating on during the day.

“He was going out with his bus pass and just sitting on the buses all day to keep warm.”

Mike Jeram, of Unison, said: “It will be a long, cold winter for many pensioners, the unemployed and for lowpaid workers and their families.”

British Gas put gas and electricity tariffs up by 18 per cent and 16 per cent respectively in August last year, blaming higher wholesale costs, but this was followed by a drop of five per cent in electricity tariffs in January when prices eased.

In July, parent company Centrica posted a 23 per cent rise in half-year profits at its residential arm to £345m.

British Gas managing director Phil Bentley said: “Britain’s North Sea gas supplies are running out, and British Gas has to pay the going rate for gas in a competitive global marketplace.”

Mr Osborne, who is attending the IMF/World Bank conference in Japan, said: “Of course I’m concerned when I see electricity bills going up and partly that is because of things beyond our control – what’s happening in the world with oil prices and gas prices.

‘‘We’ve also got to do everything we can in Britain to try and keep those bills down.

‘‘I would urge those energy companies to look again at any increases to see if they are absolutely necessary at a time like this.’’