ENERGY firms are cashing in on customer confusion to raise gas and electricity bills by more than £300 a year.

The claim comes after massive price hikes were announced, despite the prospect of companies buying their gas more cheaply later this year.

But companies, such as Scottish Power, Powergen and British Gas, are also set to profit from capped rates coming to an end in at least six schemes, says price comparison website uSwitch.com.

It warned that customers on these schemes will see their bills rise by an average of 49% - or £317 a year.

The average household bill on the capped rates is £641 a year for medium energy users, while switching to standard tariffs will put up the price to an average £958 a year.

Product manager at uSwitch, Tim Wolfenden, said the price hikes made this month "the ideal time to review your energy provider".