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Warning over '£2,000 energy bills'

posted : MONDAY, 12TH OCTOBER 2009 12:04:06 BST comments : 53

filed under : ENERGY BILLS
- Search: Energy prices Ofgem

UK consumers may face steep rises in their gas and electricity bills, Ofgem has warned
UK consumers may face steep rises in their gas and electricity bills, Ofgem has warned

Household gas and electricity bills could reach £2,000 without drastic action to shore up the UK's energy supply, regulator Ofgem has warned.

The watchdog said the country could have to spend as much as £200 billion to secure supply and meet environmental targets as it faces a capacity shortfall from soon-to-expire power stations.

Ofgem's review of Britain's energy market says household bills will rise between 14% and 25% from 2009 levels by 2020 in four scenarios which weigh up different levels of investment on infrastructure and the pace of global recovery from recession.

In its worst-case scenario - that of a strong resurgence in global economies along with missed renewable and carbon targets - the watchdog warned that consumer bills could peak at more than 60% higher by 2016 before falling back.

Consumer group Which? criticised the level of investment in energy infrastructure to date.

Fiona Cochrane, the group's energy campaigner, said: "The way consecutive governments have passed the buck on this issue is tantamount to negligence. By ignoring security of supply for so long, they've saddled consumers with what could be a colossal bill. We can't allow a situation where we have to choose between paying a king's ransom for our energy or face the lights going out."

The average household is currently paying £804 a year on gas and £443 a year on electricity, a total of £1,247, and this would rise to peak at £1,995 a year if the gloomiest prediction proved accurate.

The cheapest of Ofgem's scenarios - involving a slow economic recovery coupled with global green stimulus packages - would see annual bills hitting £1,421 by 2020.

Households have already seen average annual energy bills almost double since 2003 as wholesale prices have soared, although there has been a marginal decrease since last year's peak.

A Department of Energy and Climate Change spokesman said: "It's critical we maximise the effect of our planning reforms, clean energy rewards and efficiency measures to shift us away from fossil fuels and into a low-carbon mix."

    1 - 10
    lesley
    Wednesday, 14 October 2009 22:10:07 BST

    jbrown we worked 45years for it alot off taxation

    Gonfera Shite
    Sunday, 11 October 2009 23:15:39 BST

    Robin thieving slithering politicions, only interested in getting their snouts in the gravy train trough and ensuring that their pension is fully topped up by the public purse, Council Officers and employees are exactly the same, all they are interested in doing is artificially creating work to safeguard their jobs and extracting as much money out of the public as possible and then ensuring that they get early retirement, they are all slimey thieving f***ers.

    J Brown
    Sunday, 11 October 2009 22:26:18 BST

    Can anyone tell me who the 'green taxes are paid to and how they are helping to stop global warming ??? Just another tax con

    J Brown
    Sunday, 11 October 2009 22:24:08 BST

    Pensioners complaining again ?? you will get £250 next month to help pay your gas/electric so stop bleating. Energy watchdogs are paid by the government thats why they are 'toothless' they killed off the Independant watchdogs who worked for us

    les
    Sunday, 11 October 2009 20:11:26 BST

    i recently moved from a 3 bedroomed large house to a small 2 bedroomed cottage my supplier is scottish and southern when i rang them to notify them of moving i was told that i was £1248 in credit i informed them that i intended to change my supplier as i felt that they had increased there prices unfairly when the house was empty for 14 hours a daythey agreed and dropped my payments by £35 per month shortly after moving in i recieved a letter informing me that i in fact owed them £1248 of course i rang straight away and was told by some little pr**k that it was my job to inform them to increase my direct debit but they had in fact been adjusting my gas payments for 3 years without me notifying them so why did they feel i had to inform them about the electric they could not answer the question but retaliated by saying if i was not going to pay the bill i would be taken to court

    Smitty5
    Sunday, 11 October 2009 15:36:53 BST

    I agree with your comments Charlie5 but tell me how long have Labour been in power to redress the situation? and pricisely what have they done in all those years other then make promisses they never kept? All Labour did is elbow the other pigs out of the way to get their even greedier snouts into the public trough. Just see how they united with their Tory old school pals when it came to MP's expences. Labour are a party that no longer stands or cares for working people and now is going to get voted into oblivion, if we want Tory values we will vote for he real ones.

    Charlie 25
    Sunday, 11 October 2009 15:29:46 BST

    When it comes to general election remember who gave the utilities away the-- TORY party,this led to their sale to foreign companies. It is the Aussie and Canadian pension funds etc. that are laughing all the way to the bank the money is being drained out of this country--thats why its known overseas as Treasure Island

    Charlie 25
    Sunday, 11 October 2009 15:16:48 BST

    Dont forget next year at voting time who gave the utlities away--the TORY party, which then led to them being sold to foreign companies.Its Aussie and canadian pension funds etc. who are laughing all the way to their banks , the money is being drained out of this country.

    Smitty5
    Sunday, 11 October 2009 13:21:45 BST

    A year on from the great energy price hikes and what ever happened to Gordon Brown's promises about ensuring that all the energy companies voluntarily brought in social tariffs for the worst off otherwise he would make them adopt compulsory social tariffs? Well what's happend? absolutely nothing as usual other than him actualy giving the energy companies permission to rob us as much as they wan't in the future, A'int suppressing he's lost the next election.

    Bazza
    Sunday, 11 October 2009 10:58:24 BST

    Our country is gradually being changed over to the American style of charging,our domestic energy, governmemt monetary systems, the Banking system, all based on the maximum profiteering. I thought that when a company neded to raise capital it went to it1s share holders, who have enjoyed a lovely dividend for so long, not fleece it!s customers, my wife & I are pensioners, with limited income, we cannot get any support because we fall in that list just over the limit. It is time to get the Government to step in and find away to do something for the benefit of the people for once and cap this profiteering of former public services, and supply these services for the peoples benefit as it use to be not to long ago.

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