“The cost of upgrading the United Kingdom entire energy network was likely to cost British consumers even more than the 6 a year increase originally predicted by energy experts last year, it has been revealed this week.”
Moving into the lower carbon economy is likely to cost more to energy suppliers and offloading those extra costs to the countries consumers will see a larger increases to the price rises already predicted due to higher wholesale costs.
Recently consumer groups have said that homes face massive price rises which will see household energy and utility bills rise by as much as double over the coming decade. They warned that Ofgem claim of more increases is just the tip of the iceberg as the costs of upgrading and engineering for Britains pipes, and wires rise to more than £32billion.
Ofgem claim that this cost is necessary in order to move to a lower carbon economy and that costs to consumers would be minimal. However, consumer groups and online price comparison websites like Uswitch have said that homes are more likely to face increases of 50 and 100 per cent. This increase would take the average bill to £2,000 within the next ten years.
Ofgem (the Office of the Gas and Electricity Markets) said that an increase in utility and energy bills are necessary in order to upgrade Britains ageing national networks. It added that an increased demand and a change in the way user’s of energy, such as charging electric cars, will lead to a need to replace the older energy networks.
The regulator also revealed a new pricing model, which it said represented the biggest change to the regulatory framework for 20 years. The government backed feed-in tariff for PV solar panels moves away from previous solar panel grant schemes, to an incentive driven approach that rewards more efficient homes than those with none.
Stuart Lovatt from Heat my Home adds: “The bad news over energy costs just seems to be ongoing and relentless in its ferocity.
I am unable to put a positive spin on the future outlook for energy pricing, but all I can do, is advise anyone who is staying put in the long-term, to invest in solar technology.”
Invest in ways to reduce your dependency on conventional energy and look seriously at solar panels, which currently provide, the best technologies of all renewable technologies for home owners. After all, it’s best to start making the saving now, then in 10 years time.
"Feel the pride."
Stuart Lovatt on
Founder of Heat My Home.