Planet Gore

Electricity Costs in England

Set to skyrocket, thanks in part to green technologies:

Ofgem’s review of Britain’s energy market said that in a “worst case scenario” costs could rise by 60pc by 2016.

The average household spends £804 a year on gas and £443 a year on electricity, a total of £1,247, according to the latest figures from Oftem. A 60pc increase from £1,247 would take the average annual bill to £1,995

Mark Todd, a director of Energyhelpline, the switching service, said: “If Ofgem’s worst case comes true, we are looking at the £2,000 a year energy bill.”

He added: “A rise of 60pc is credible, unfortunately, especially for electricity. A lot of generating plant is about to be replaced with greener technology.” But he said he was more sceptical about gas prices rising by that much as the industry was not about to undergo similar changes.

Mr Todd said Ofgem’s gloomy predictions could take some of the heat off energy companies, which are being pressed to cut prices now in response to large falls this year in wholesale costs. He said: “The prices suppliers are paying are still lower than last year – the only way retail prices should be going in the short term is down,”

In its review of Britain’s energy market, Ofgem listed four possible scenarios for the future. In the worst case — that of a strong resurgence in global economies along with missed renewable and carbon targets — it warned that prices could surge by more than 60pc by 2016 before falling back.

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