Energy bills to rise to £5k
Published: 22 June 2009 By MoneyhighStreet Staff Leave a Comment
By 2020 energy bills could rise to a staggering £5k, up almost 4 times higher than they currently are.
uSwitch.com research shows that average household energy bills are currently £1,243 but in around 10 years time this could spiral up to £4,733 a year.
We’ve already seen energy bills more than double in the last 5 years.
The prediction of the £5k bills is based on the trends over the last 5 years and takes into account the cost of infrastructure investment, cutting carbon and boosting energy efficiency.
Whilst the recession is currently dampening demand for energy, as this ends (predicted 2011/12) the global demand for energy will rise again.
There will be upward pressure on wholesale energy prices, particularly from the energy hungry China and India and at the same time here in the UK the North Sea oil will start to run out.
There is the focus on energy efficiency measures by the government and whilst these will help, in effect they will simply balance some of the other factors leading to increased energy usage – growth in the number of single person households and the ever growing use of electrical items for example.
Ann Robinson, Director of Consumer Policy at uSwitch, said ‘energy efficiency has been massively underperforming even though it is one of the biggest defences we have against escalating costs. ‘
She added ‘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.’
A new energy efficient boiler or more insulation can help.
Also, by ensuring you get the best energy deal, if you can save money there may be the opportunity to reinvest this in energy efficiency measures which can further help you save.