Regulator predicts rising energy prices

09/10/2009

Future price trends for gas and electricity bills have been forecast by a new Ofgem report.

Energy bills could suffer from a price spike of up to 60 per cent, Ofgem has suggested in a new study released today (October 9th).

The industry regulator said that consumer costs were likely to have risen by between 14 and 25 per cent above inflation by 2020.

However, an even sharper rise caused by wholesale market movements, followed by a subsequent decline, was predicted for the middle of the next decade.

Ofgem chief executive, Alistair Buchanan, commented: "Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets.

"[We] will be putting forward proposals in the New Year … to ensure that Britain's energy industry can meet the challenges ahead."

Also commenting on the report, EuroDebt director Kevin Still said: "Rising energy costs remain a problem for people struggling with their finances and needing debt help. EuroDebt has introduced its free and independent energy comparator to allow people to find the best providers and tariffs on the market. Just visit www.energyswitching.co.uk to compare the market."

Apart from wholesale market trends, potential factors behind the price rises cited by the regulator include the cost of environmental programmes and the impact of ageing infrastructure on supply.

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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