Ofgem Warns of Risk of Unaffordable Energy Bills

Ofgem have recently released a report into the future of Britain’s energy market, stating that there is a risk energy bills will continue to rise up to 25pc over the next decade unless action is taken.

The rise is put down to a combination of the financial crisis, increasing dependency on gas imports, environmental targets and the closure of power stations – this leads to doubt as to whether current energy supplies are secure and sustainable.

Ofgem Chief Executive spoke on BBC Radio Four, stating that energy bills could rise between 14 and 25pc by 2020.

Earlier this week, the price comparison website moneysupermarket.com also stated that energy bills have doubled since 2003, and that winter bills have increased by 20 per cent (£104) to £616.

The report stated that an increasing number of consumers will be left unable to afford the energy that they really need. It claims that radical changes are needed in the way that Britain generates energy, and that billions of pounds need to be invested into cutting down carbon emissions.

Homeowners can also take measures to improve the energy efficiency of their homes. By increasing insulation, hundreds of pounds can be knocked off the yearly energy bills. Double glazing can effectively reduce heat lost through windows to reduce bills by an average of £135, and measures such as loft insulation or cavity wall insulation will help keep costs down over time.