scheming power firms rig prices to con families out of £400 every year

Households are being overcharged by more than £400 a year for gas and electricity because power companies are fixing prices, it is claimed.

The official consumer body Energywatch says the power supply industry in Britain and Europe is rigged against consumers.

It also accuses the Government of being docile and complacent while millions struggle to pay their bills.

Householders have already been hit with a 15 per cent increase this year, and the industry is suggesting another 25 per cent rise.

The giant power suppliers claim they are simply passing on increases in the wholesale cost of gas, which has been driven up by a record leap in the price of oil to more than 120 dollars a barrel.

However, Energywatch says this link between the gas price and oil is unjustified, artificial and outdated. The watchdog says the link amounts to a form of price-fixing.

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Concern over small biomass option

Small-scale biomass power plants can have a greater environmental impact than other renewables, a study says.

UK researchers found that although the facilities offered carbon savings, they produced more pollutants per unit of electricity than larger biomass plants.

They suggested the way the feedstock was transported produced proportionally more pollutants than larger sites.

The findings challenged the view that such schemes offer an green alternative to grid-based electricity, they added.

Supporters of community biomass schemes say the power plants are sustainable because the fuel, such as wood chips, can be sourced from the local area.

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Trapped' homeowners can't switch to cheaper energy tariffs

People looking to avoid energy price hikes by switching to cheaper deals could be trapped with their current supplier if they have defaulted on a payment and owe money, according to MoneyExpert.com.

The independent financial comparison website, owner of SimplySwitch.com, says some 726,000 people missed a gas or electricity bill in the last six months and warns that just as many could be trapped into expensive tariffs if they don't settle their bills.

Sean Gardner, founder of MoneyExpert.com, said: "Generally speaking if you have defaulted on a recent energy bill and still owe your supplier money, you will be tied into that contract until you pay up.

"With wholesale energy prices increasing, it's inevitable that gas and electricity prices will rise again, so we anticipate large numbers of people to look to switch to the most competitive deals once that process begins.

"However if you've missed a bill you won't have that luxury and could be hit with price hikes that you just can't avoid. The only way to release the shackles is to pay up and move on."

British Gas owner Centrica has warned it will have to increase prices to maintain profits, sparking speculation that an average household could face yearly fuel bills of more than £1,300.

The rules on switching provider state that any money a customer has not paid to a supplier becomes a 'debt' after 31 days. Suppliers are then allowed to stop their customers changing to another company until the 'debt' is repaid. Suppliers also have the choice to allow you to switch.

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Ships bring water to parched Barcelona

Climb down the stony banks of the massive Sau reservoir in the mountains above Barcelona and you get a real sense of why this famous city is so short of water that it's resorted to bringing in emergency supplies - by ship.

Nestling in a deep valley of stunning cliffs and forests, this vital source of water has sunk so low it's exposed the eerie sight of a medieval village that was flooded when the reservoir was opened in the 1960s.

The huddle of ancient stone buildings, including a church with its spire, has now re-emerged into the light and stands as a potent symbol of the severity of this water crisis.

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