The release of Ofgem’s ‘Project Discovery Report’ has highlighted a number of potential warnings for energy consumers within the coming years. One of these is that fuel bills could rise by as much as 60% (above today’s prices) by 2016 to cover the cost of the rising demand for gas and electricity and also investment in renewable fuel technology.
It has only been a few months since Ed Miliband’s Department of Energy and Climate Change stated that energy bills would only increase by 14% by 2020 and, with the winter months just around the corner, now is the time for consumers to be proactive in looking at ways to reduce their energy spending and consumption; the simplest methods being to compare energy prices and be more energy efficient.
The publication of Ofgem’s Project Discovery report has highlighted that the cost of modernising the U.K’s energy generation systems will cost around £200 billion over the next 15-20 years. This includes initiatives which will make the production of energy more environmentally friendly and help Britain to meet its climate change targets.
The cost of this will have to be met by the energy providers, who will inevitably meet these costs by putting up the price of gas and electricity for consumers. This means that energy comparison providers will again be at the forefront in helping consumers reduce the cost of their energy bills by switching suppliers.
A spokesperson for Energy Choices commented:
“We all have a responsibility to reduce our carbon footprint and this report demonstrates that the Government is taking this seriously, which is good news for the environment. At the same time, however, this is bad news for consumers, as it will mean a hike in energy bills, at a time when budgets are increasingly stretched.
“We advise all consumers to look carefully at their energy spend, in order to reduce this and get the very best deals possible from suppliers. One of the ways in which they can do this is by using the price comparison tools and energy-saving tips, which are available on our website.”
The government is also under increasing pressure to get 33% of the UK’s energy from renewable sources by 2020. Add to the mix that the majority of energy suppliers have already warned that, despite pressure from Ofgem, there will be no further price decreases it looks as though it will be a long and hard road for energy consumers over the coming years.
