£319 Million Investment Could Spell Future Bill Misery For Consumers
Released
on: January 22, 2010, 1:52 am
Author: uSwitch.com
Industry:
Energy
Ofgem yesterday published final proposals for funding the
first tranche of projects from a potential GBP1 billion package of
extra investment in Britain's high-voltage networks. The first
tranche, totalling GBP319 million, will help connect Great Britain's
growing renewable electricity generation. However, this is just part of
a much broader GBP233.5 billion investment programme that is expected
to add GBP548 a year in total onto household
energy bills, warns uSwitch.com,
the independent price comparison and switching service. And while the
investment is needed, consumers must start preparing for the eventual
impact on their energy bills.
Will Marples, energy expert at uSwitch.com, comments: "This announcement is
one of many that consumers can expect to hear about huge investments being made to
secure our longer-term energy supplies. The investment is crucial, but there can be
no doubt that it will have an impact on our future energy bills and this has to be
explained to consumers now so that they can start taking action to protect
themselves in the future.
"The average household energy bill today is GBP1,239 a year and the additional cost
of investment alone is expected to add GBP548 a year onto our bills. Ongoing pricing
trends coupled with this investment could see household energy bills hit as high as
GBP4,733 a year by 2020, nearly four times higher than they are today.
"This is a wake-up call for us all. The GBP5,000 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 to keep the lights on in
Britain will alone add GBP548 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.
"Consumers have to start taking action now to future-proof themselves against far
higher energy bills. My advice 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 you can speak to your supplier or the Energy
Saving Trust to see if you can get any financial support to help with it. Any
savings you make through cutting the price of your energy could also be re-invested
into energy efficiency measures so that you reap even greater rewards in the
future."
See
the full version of this press release.
For more information please contact:
Jo Ganly 0207 802 2915 / joganly@uswitch.com
About uSwitch:
uSwitch.com is a free, impartial online and
telephone-based comparison and switching service, helping consumers compare prices
on gas, electricity, water, heating cover, home telephone, broadband, digital
television, mobile phones, personal finance products and car insurance.
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