Household annual energy bills could rise to more than £4,000 in 10 years' time, almost four times higher than they are today, according to new research.
Forecasters from uSwitch.com concluded that on current trends, the bills would reach £4,185 by 2020, compared to £1,243 at present.
The research from the price comparison service is based on pricing trends over the last five years, taking into account inflation and the cost of cutting carbon and improving energy efficiency.
On top of that, the government's committment to securing the country's longer-term energy supply, allowing them to roll-out smart meters in homes, will cost taxpayers an additional £548 a year, meaning the cost of energy to each household could be as high as £4,733 within a decade.
The uSwitch.com analysts also believe that the eventual end of the recession, which they predict will happen in 2011-2012, will see a global increase in energy demand, driven by rising economies such as China and India, which will put upward pressure on prices.
Ann Robinson, director of consumer policy at uSwitch.com, said the figure was a "wake-up call" and households would have to adapt accordingly.
"The Government has been banging the drum for energy efficiency for a while now, but consumers have been reluctant to spend money on these measures," she said. "As a result, energy efficiency has been massively underperforming even though it is one of the biggest defences we have against escalating energy costs.
"We also have a competitive energy market, and yet less than 5 per cent of consumers are on the most competitive energy plans – most people are paying far more than they have to for the energy they use.
"This has to change. My advice to consumers 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 the savings you make through cutting the price of your energy could be reinvested into energy efficiency measures so that you reap even greater rewards in the future."
Garry Felgate, chief executive of the Energy Retail Association, said it was "impossible" to accurately predict prices over the next 10 years.
"While there will be inevitable additional costs to pay for investment in new, cleaner generation and securing the country's energy supply, the wholesale cost of energy cannot be predicted in such a simplistic manner," he said.
"What we do know is that the best way customers can keep energy costs down now and in the future, is by using less energy. This is why the major suppliers are investing around £4 billion over the next three years in energy efficient measures – like free and low-cost insulation and home energy audits – helping their customers use less gas and electricity and cut their fuel bills."
The research from the price comparison service is based on pricing trends over the last five years, taking into account inflation and the cost of cutting carbon and improving energy efficiency.
On top of that, the government's committment to securing the country's longer-term energy supply, allowing them to roll-out smart meters in homes, will cost taxpayers an additional £548 a year, meaning the cost of energy to each household could be as high as £4,733 within a decade.
The uSwitch.com analysts also believe that the eventual end of the recession, which they predict will happen in 2011-2012, will see a global increase in energy demand, driven by rising economies such as China and India, which will put upward pressure on prices.
Ann Robinson, director of consumer policy at uSwitch.com, said the figure was a "wake-up call" and households would have to adapt accordingly.
"The Government has been banging the drum for energy efficiency for a while now, but consumers have been reluctant to spend money on these measures," she said. "As a result, energy efficiency has been massively underperforming even though it is one of the biggest defences we have against escalating energy costs.
"We also have a competitive energy market, and yet less than 5 per cent of consumers are on the most competitive energy plans – most people are paying far more than they have to for the energy they use.
"This has to change. My advice to consumers 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 the savings you make through cutting the price of your energy could be reinvested into energy efficiency measures so that you reap even greater rewards in the future."
Garry Felgate, chief executive of the Energy Retail Association, said it was "impossible" to accurately predict prices over the next 10 years.
"While there will be inevitable additional costs to pay for investment in new, cleaner generation and securing the country's energy supply, the wholesale cost of energy cannot be predicted in such a simplistic manner," he said.
"What we do know is that the best way customers can keep energy costs down now and in the future, is by using less energy. This is why the major suppliers are investing around £4 billion over the next three years in energy efficient measures – like free and low-cost insulation and home energy audits – helping their customers use less gas and electricity and cut their fuel bills."
Source: The Daily Telegraph
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