Report: 54% hike in household power bills by 2020
Domestic energy bills in the UK will rise by 54% by 2020, driven by a combination of rising wholesale prices and green energy measures, according to new analysis.
A paper published by Bloomberg New Energy Finance calculates that the average household energy bill will climb from £454 to £699 by the end of the decade.
In the past two months, the ‘big six’ energy companies in the UK have announced above-inflation bill gas and electricity increases for consumers.
Bloomberg New Energy Finance warns British customers that this trend will continue driven partly by large-scale investment in low carbon energy generation planned under government electricity market reforms.
Its research projects that low carbon policies will account for 40% of the likely bill increases by 2020 and rising wholesale prices for around 28%.
Mike Lawn, head of power research at Bloomberg New Energy Finance, said: “These electricity price increases will reflect the fact that the UK is transforming its mix of generation, pushing renewables close to 30% by 2020, largely at the expense of coal, and with a greater dependence on rising gas prices. The only way households and businesses can mitigate the impact of higher electricity bills will be by improving energy efficiency.”
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Author: Ben Willis