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Renewable energy will play a “crucial part” in Britain’s energy future according to Chancellor George Osborne. In his annual Budget address he said he wants renewable energy at the lowest possible costs to energy bill payers.

Wholesale gas prices will be higher later in 2012, warned British Gas. The well-known energy supplier’s owners said gas costs would be 15% more expensive next winter, adding: “The trend for retail energy costs therefore remains upwards.” British Gas customers last August saw a 16 per cent rise in electricity prices and an 18% rise in gas prices.

A consumer watchdog has claimed many of the cheapest gas and electricity deals are ignored by energy companies when speaking to customers. Researchers at Which? called energy suppliers and asked for the cheapest deal. For example, telesales staff at Southern Electric (part of the Scottish and Southern Energy Group) mentioned the cheapest tariff in just three of the 12 calls. The firm replied there was little price difference between the tariffs, but accepted it could learn from some points raised.

The Mayor of London’s new energy efficiency programme aims to install energy and water efficiency measures in homes across the capital.

The UK Treasury could fight EU calls to end tax breaks for energy-saving goods.

A report says firms can use a ‘light bulb moment’ of inspiration to save on their energy spend. The report, entitled The Light Bulb Moment, explains that manufacturing firms across the UK could save £1.4 billion a year simply by installing more efficient lighting systems.

Saudi Arabia has opened emergency talks with European refinery groups after world oil prices surged to the $120 a barrel mark. The Saudis and their partners in the Opec oil producers cartel said any shortfall in oil supply caused by instability in Libya would be made up. An engineer with the Sirte oil company said a blockade by rebels had prevented 80,000 barrels a day being exported from the Dregga field alone.

Fears have been raised about fuel shortages in one English region.

The Energy Secretary says he is going to get tough on the big six energy companies. Talking to the Liberal Democrat conference in Birmingham, Chris Huhne also wants to help smaller companies get a share of the market. He said: “It is not fair that big energy companies can push their prices up for the vast majority of their consumers, who do not switch, while introducing cut-throat offers for new customers that stop small firms entering the market.”

Military and business leaders in the USA warned that further oil price rises resulting from the Libyan revolt would mean a heavy burden on strained Pentagon budgets and the US economy. General Charles Wald, the former deputy commander of European Command, said each $10 rise in a barrel costs the Pentagon an additional $1.3bn. “You start adding a billion here, a billion there, and that is a huge amount of money being spent, even in military terms,” he said.

An academic says rising energy bills are causing more fuel poverty deaths. Professor John Hills has called for a new definition of the issue, where people with low incomes are forced into poverty by high fuel bills. His report discovered that in 2004, fuel-poor households faced a shortfall of £256 to heat their homes and avoid poverty, but in 2009 the figure rose to £402.

Commodity analysts at Japanese bank Nomura have warned that oil prices could perhaps strike $220 a barrel if the crisis in the Middle East continues. The market gurus compared the current situation to the 1990-1991 Gulf War, saying if Algeria and Libya were to halt oil production, prices could peak at the $220 mark. Others have given a more modest prediction of $150 if the unrest spreads. The average barrel price has surged beyond $120 in the past fortnight.