Taxpayers are being asked to pay nearly half a million pounds more each year for street lighting because of rising energy costs.

A £427,000 increase in West Sussex County Council's annual lighting bill will bring the total spent on powering street lights, signs and bollards to £1.8 million.

The figures were greeted with dismay by consumer watchdogs, who say local authorities and business across the UK are being hit hard by dramatic increases in the price of fuel.

From April 1 London Energy Green, a recognised ecology-friendly company, will take on the contract for lighting the county's 64,000 street lights and 10,000 illuminated signs and bollards.

The power will come from renewable sources such as hydro-electricity, landfill gas, tidal and wind power.

It will cost 35 per cent more than the last contract, awarded in 2003, but it means the county council will be buying 38 per cent of its electricity from renewable sources, easily exceeding its target of 25 per cent.

Tex Pemberton, the council's Cabinet member for highways and transport, said: "I am delighted the new electricity contract will be making such a significant contribution to the county council's green objectives. It is a large increase but we simply have not been immune to rising prices in this sector.

"However, we are satisfied we have achieved the best possible terms, thanks to being part of a central buying consortium involving several other local authorities, and have a fixed price for the next two years in what is a very volatile market."