Ofgem yesterday published final proposals for funding the first tranche of projects from a potential GBP1 billion package of extra investment in Britain’s high-voltage networks. The first tranche, totalling GBP319 million, will help connect Great Britain’s growing renewable electricity generation. However, this is just part of a much broader GBP233.5 billion investment programme that is expected to add GBP548 a year in total onto household energy bills, warns uSwitch.com, the independent price comparison and switching service. And while the investment is needed, consumers must start preparing for the eventual impact on their energy bills.

Will Marples, energy expert at uSwitch.com, comments: “This announcement is one of many that consumers can expect to hear about huge investments being made to secure our longer-term energy supplies. The investment is crucial, but there can be no doubt that it will have an impact on our future energy bills and this has to be explained to consumers now so that they can start taking action to protect themselves in the future.

“The average household energy bill today is GBP1,239 a year and the additional cost of investment alone is expected to add GBP548 a year onto our bills. Ongoing pricing trends coupled with this investment could see household energy bills hit as high as GBP4,733 a year by 2020, nearly four times higher than they are today.

“This is a wake-up call for us all. The GBP5,000 a year energy bill may seem like an outside possibility, but we have to remember that energy bills doubled in the last five years alone and that the huge investment needed to keep the lights on in Britain will alone add GBP548 a year onto our bills. The fact is we are entering a new era of high cost energy and households will have to adapt their behaviour accordingly.

“Consumers have to start taking action now to future-proof themselves against far higher energy bills. My advice 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 you can speak to your supplier or the Energy Saving Trust to see if you can get any financial support to help with it. Any savings you make through cutting the price of your energy could also be re-invested into energy efficiency measures so that you reap even greater rewards in the future.”

Via EPR Network
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