Energy targets set by Brussels will force up annual household energy bills by £149 within six years, according to new research.

European Union red tape combined with a commitment to generate 15 per cent of energy through renewable sources will push up domestic prices by 11per cent, according to the Open Europe report.

Britain's small and medium sized businesses face an even bigger hike, with an average £350 rise -around 23 per cent, in bills.

Around 5 per cent of total energy consumption, which includes heating, transport and electricity, came from renewables last year.

But the UK has a legally-binding EU target to source 15 per cent of its energy from such sources by 2020.

Open Europe pointed to government impact assessments that it claimed show Brussels-related energy regulations cost Britain around £8.4 billion a year and around £96 billion in total.

Raoul Ruparel, Open Europe's head of economic research, said: "Despite admirable goals the EU's green policies have imposed huge costs but delivered limited benefit and are marred by conflicting objectives.