Warning energy bills could rise by 60%
Gas and electricity bills could increase by more than 60 per cent by 2016
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By Richard James. |  |
Friday, 09, Oct 2009 09:11
By Inthenews.co.uk staff
Gas and electricity bills could increase by more than 60 per cent by 2016, the energy watchdog Ofgem has warned.
The regulator today said domestic energy bills could increase by between 14 per cent and 25 per cent by 2020 - with spikes of up to 60 per cent in the meantime.
Ofgem has put forward four scenarios for the future of secure UK energy supplies - claiming up to £200 billion is needed to be invested.
The upshot of this investment is that customers could face price rises.
Ofgem chief executive Alistair Buchanan said: "Early action can avoid hasty and expensive measures later.
"Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets.
"However, there is still time to act."
The report claims if the economy recovers rapidly and there is significant investment in green technology, energy bills could rise 23 per cent by 2020 - with greater electricity demand as more use of electric cars and heat pumps.
If green stimulus packages from governments around the world come, bills will rise 14 per cent.
A further scenario is that countries focus on energy security over environment targets and competition for pushes up energy prices - could push gas and electricity prices up by 60 per cent by 2016 before falling back.
Finally a longer recession could lower investment, leading to greater dependence on imported gas - leading to prices rising by 22 per cent.