Debt help: Energy costs could rise by 25 per cent in next decade

04/02/2010

Consumers may require debt management plans to help them cope with rises in energy prices.

Gas and electricity prices could rise by as much as 25 per cent within the next decade, which could make it harder for homeowners to meet the cost of bills.

This is according to the latest report on the UK's energy supplies from industry body Ofgem.

The report called for the government to take action now in order to combat price rises before they affect consumers.

Ann Robinson from energy comparison site uSwitch, commented: "The fact is we are entering a new era of high-cost energy and households will have to adapt their behaviour accordingly by paying the lowest possible price for their energy and reducing the amount they use."

Plans to reduce the price rises include a £112.5 billion investment in renewable energy generation as well as a £52.1 billion investment in upgrading and building new power plants.

Kevin Still, director of EuroDebt, commented: "Given the long-term adverse outlook on energy prices, the news that British Gas is dropping its prices again is relatively good news.

"Energy switching should be something that every bill payer should be looking at. Using a free independent energy website like www.energyswitching.co.uk to compare prices only takes 5 minutes."

Posted by Fiona Smith

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