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Energy watchdog Ofgem has paid out more than £1 million in bonuses over the last two years.

Even though household bills have been rising, the organisation has handed out £1.2 million of taxpayer's cash to its staff, reports The Sun.

In 2010, Ofgem paid out £602,969 to 266 workers, amounting to an average bonus of £2,267. A year later, £515,047 was shared between 346 officials, equating to £1,489 each.

Speaking in a Parliamentary written answer, shadow energy secretary Caroline Flint said: "Hard-pressed families and pensioners struggling to make ends meet will be astonished Ofgem paid staff over a million in bonuses, while energy bills soared."

Elsewhere in the energy market, the Independent has reported that British supplier E.ON recorded a drop in profits of 7.6 per cent.

Its UK retail business saw a fall in underlying earnings to £304 million, with Britain's mild winter weather seen as one of the contributing factors to the reduction.