Man-Made Energy Crisis: Energy Bills To Rise £640 By 2020, Group Warns
Annual household energy bills could rise by more than £600 within seven years so power companies can keep the lights on, consumer champion Which? has warned.
Sky News has learned the watchdog has written to the Treasury ahead of next week’s budget to warn of rising costs.
In a new forecast, Which? has predicted energy companies will need to spend £118bn on new infrastructure between now and 2020.
This would include building new power stations, replacing grids and building wind farms as part of a drive to sustain Britain’s power supply and cut down on carbon emissions.
Which? believes this cost will inevitably be passed on to consumers, and that households and businesses will foot the bill.
This would mean that the average bill would exceed £2,000 a year even if wholesale costs of gas and electricity remain stable – an annual rise of £640 per household.
Richard Lloyd, executive director of Which?, said: “I don’t think consumers know that this is heading their way and that decision has already been made by the Government.
“This is a massive chunk potentially on everyone’s bills. This means one thing: that household bills are set to rise, and to rise for many people very steeply for the foreseeable future.”
Which? is campaigning for a full market investigation to find out if consumers are paying a fair price for energy.
Sky News also learned that at least one of the ‘big six’ energy firms is not guaranteeing to make the necessary investment should it not prove profitable for the company.