Watchdog warns energy bills could soar by 60%
ITN Fri Oct 9 2009 17:55:40
Households could see a 60 per cent increase in energy bills in the next seven years according to the UK’s regulator.
Ofgem says consumers face potentially steep price rises in their gas and electricity bills as supplies become more volatile.
In a review of Britain’s energy market, the watchdog said an investment of up to £200 billion is needed to secure supplies and meet environmental targets.
Ofgem said the cheapest of four scenarios would see a hike of 14 per cent by 2020, a result of slow economic recovery and global green stimulus packages.
In this option, high carbon prices and Government policies support investment in renewables, nuclear and carbon capture and storage.
Ofgem said the possibility of a 60 per cent hike in bills by 2016 would be caused if wholesale gas prices spiked as a result of resurgent global economies competing for energy resources.
http://itn.co.uk/c5a622d04740dc545edcc47bb74c797e.html
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