Belco warned yesterday that electricity and propane gas costs could be between five and ten percent higher this winter than they were a year ago.

The company made the announcement as it sought to clarify earlier press reports suggesting a hike of almost 50 percent.

Belco said the rise was a direct result of an increase in world fuel prices.

A spokeswoman said: "In August this year the cost per barrel of fuel was 46 percent higher than in August last year.

"The cost per kilowatt hour that our customers paid in August was 24.79 cents, an increase of 2.12 cents or 8.5 percent when compared to August 1999.

"While the basic cost of propane gas in September was 51 percent higher than September, 1999 the price that our propane gas customers paid in August was 11 percent higher than a year ago.

"We expect that through the winter months, electricity and propane gas costs will range between five and ten percent higher than they were last winter.

"In the longer term, as the margin between world demand and supply narrows, we expect that electricity costs will drop as the world price comes down.

Acting Finance Minister Alex Scott said: "I am sure what everyone wants to hear is what, if anything, is Government able to do to impact on what everybody admits is just short of a fuel crisis.'' He said tax taken from Belco's fuel was just 9.5 cents a litre whereas the tax Government charged on diesel and fuel oil elsewhere was much higher.

Mr. Scott said that hotels also got tax breaks on fuel. And he said Belco had done much to keep prices down.

He said: "Government monitors Belco's rates and they deserve credit for not increasing basic rates for four years.'' He urged people to save cash by conserving energy. He said: "When there is a light left on in a room when no one is there turn it off -- do the same thing with the TV.

"It's surprising how much savings an individual can make by doing this.'' Chamber of Commerce President Cris Valdez-Dapena said the price hike would affect her members across the board.

She said: "It will affect the cost of doing business and they will deal with it in the best possible way they can.'' Age Concern Chairwoman Joy Leman said pensioners would be hard hit by the hike.

She said: "Any senior on a fixed income would be affected.'' She urged seniors to take note of energy-saving tips which could save them vital cash.