UK households have been warned that bigger energy bills could be a reality in the next ten years, suggesting that those experiencing debt problems now may see their difficulties worsen over time.
According to Ofgem, Britons could experience a 25 per cent increase in tariffs but price comparison website uSwitch.com has said that this is a conservative estimate.
The company noted that, taking into account pricing trends and required investments, bills could reach £4,733 by 2020 and director of consumer policy Ann Robinson said that this is a “big wake-up call”.
“[It] raises serious concerns about the ongoing affordability of our energy,” she remarked, adding that although investment in the industry is essential, “there can be no doubt that it will have a big impact on household energy bills”.
Recent figures from uSwitch.com indicated that increases in these tariffs have led to a greater number experiencing debt problems, with 13 per cent more consumers being forced to reach agreements with suppliers regarding their accounts in the third quarter of 2009 compared to the previous three-month period.
By Sarah Adie