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Energy Bill Increases

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Rises of up to 42% for next decade

"The growing reliance on Eastern European gas also makes Britain vulnerable to the volatile energy market. A predicted post-recession leap in demand from China and India will push up costs worldwide, meaning prices soaring at a much faster rate by 2020".

Ann Robinson

As reported on the 22nd June 2009 by the

ENERGY Bills will hit a shocking £5,000 a year to strike a blow to millions of struggling families, experts warned last night.

Consumer champions said the massive sum was a “wake-up call”, marking the end of cheap electricity and gas.

Bills will rise by up to 42 per cent a year over the next decade - with the biggest single increase an eye-watering £1,280.

But they said this will be boosted by a yearly £548 to help overhaul the UK’s out-of-date energy supply system.

And they warned that the huge rise would stretch household budgets to breaking point and dump hundreds of thousands more people into fuel poverty.

Experts at uSwitch.com said that average annual bills have more than doubled from £580 five years ago to £1,243 today.

Ann Robinson, uSwitch.com consumer policy director, warned: “This is a wake-up call for us all"

The £5,000-a-year energy bill may seem like an outside possibility, but we have to remember that energy bills doubled in the last five years alone and that the huge investment needed just to keep the lights on in Britain will alone add £548 a year to our bills.

“The fact is we are entering a new era of high-cost energy and households will have to adapt their behavior accordingly.”

Energy firms need to upgrade pipes and gas storage, overhaul power plants and plough billions into rolling out smart metering.

The bill for making “green” energy by cutting emissions, using wave or wind power and cleaning up coal power stations will also run into billions of pounds.

Prices will keep rising steadily to £3,584 in 2017 and £5,199 in 2019, uSwitch predicts. They then forecast that bills will fall slightly.

Strict global targets for the reduction in pollution are causing energy suppliers to spend millions in the research and development of sustainable energy, a majority of which is electricity.  With gas on such a global demand and known oil fields running low and the exploration of new ones incredibly expensive the research for manufacturing clean electricity is a rapidly becoming the greener and cheaper option for generations to come.

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