The UK Government’s forecasts have been knocked by RWE npower’s warning of an increase in energy bills due to an unprecedented investment in infrastructure. RWE npower released a report “Energy Explained” which states how the average energy bill could rise by £240 to £1487 by 2020. This rise does not take into account increases in inflation. The report identifies how certain costs are expected to rise, policy and regulation costs are predicted to rise by a staggering 78% between 2013 and 2020, transportation costs adding an extra £114 onto the average domestic bill by 2020 and the cost of smart meters being provided will add £24 to the average household bill by the end of the decade.
In a survey produced by the Daily Mail 56% of consumers expressed concerns about the costs of their energy bills with this percentage rising to 71% for those with a lower income.
The chief executive of npower Paul Massara said, “Energy costs are rising. This is an indisputable fact, and it’s time that all of us involved in energy in the UK are upfront about it.” Energy suppliers and the Government should be clear when presenting to consumers the reasons behind the rise in energy prices and the only way of controlling this rise is to reduce consumption.
If consumers do not realise that they need to reduce their energy consumption it may lead to their bills rising, and enforcing energy efficiency could become a struggle. For individuals to save money they should seek the advice of a save money expert who could provide information on the best steps to take in order to save.