Household Energy Bills to Hit Almost GBP5k in 10 Years Time
on: June 24, 2009, 8:44 am
are being warned today that they could be facing annual energy
bills of almost £5,000 a year by 2020. The shock forecast
from uSwitch.com, the independent price comparison and switching
service, is based on pricing trends over the last 5 years and
takes into account the huge investment programme shortly to be
undertaken by the energy industry and Government. The investment,
expected to total £233.5 billion, will secure the country's
longer-term supply and enable the roll-out of smart metering into
all homes, but will add £548 a year onto household energy
bills for the next 15 years.
at pricing trends alone, consumers could expect energy bills to
reach £4,185 by 2020. This strips out the cost of investment,
but factors in inflation and volatility in the wholesale markets,
as seen by suppliers over the last 5 years. Since 2004, global
demand for energy and volatility in wholesale prices have contributed
to a 114% increase in household energy prices, including a
42% or £381 increase last year. The overall effect has been
to see household energy bills more than doubling from £580
in 2004 to £1,243 today.
is expected to continue to be a dominant theme in the energy market
going forward. Although the current world-wide recession is dampening
demand for energy, the recession is due to end by 2011/12, when
global demand for energy can be expected to start climbing again.
Power hungry economies, such as China and India, will be returning
to strength, resulting in an upward pressure on wholesale energy
prices. At the same time, North Sea oil will start to run out
adding greater pressure on the market. Wholesale energy prices
account for around 50% of a household bill so continuing volatility
will have an impact on the amount consumers will pay.
well as upward pressure on household energy bills, there will
be downward pressure too. The Government's drive to make British
households more energy efficient will start to pay dividends.
But, instead of reducing bills it will serve to counterbalance
other factors pushing energy usage up, such as the growth in single
person households, Britain's ageing population and growing reliance
on electrical gadgets.
Robinson, Director of Consumer Policy at uSwitch.com,
says: "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 onto our bills.
The fact is we are entering a new era of high cost energy and
households will have to adapt their behaviour accordingly.
Government has been banging the drum for energy efficiency for
a while now, but consumers have been reluctant to spend money
on these measures. As a result, energy efficiency has been massively
underperforming even though it is one of the biggest defences
we have against escalating energy costs. We also have a competitive
energy market, and yet less than 5% of consumers are on the most
competitive energy plans - most people are paying far more than
they have to for the energy they use.
has to change. My advice to consumers is to invest in making your
home more energy efficient, reduce the amount of energy you use
and make sure you are paying the lowest possible price for it.
Big projects such as a new energy efficient boiler or home insulation
can be expensive, but the savings you make through cutting the
price of your energy could be re-invested into energy efficiency
measures so that you reap even greater rewards in the future.
be put off. If cost is an issue, speak to your supplier to see
if they can help - they have a pot of money available to help
households with energy efficiency. Or contact the Energy Saving
Trust for advice. The key thing is to start future-proofing yourself
against higher energy bills now."
Contact Details: See
the full version of this press release.
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For more information please contact:
Jo Ganly, uSwitch.com on 0207 802 2915 or email@example.com