Debt management may be needed in the face of possible energy bill hikes
Debt management may be needed in the face of possible energy bill hikes
Wednesday 3rd February 2010
Energy industry regulator Ofgem has stated that energy bills will become unaffordable unless there is a radical system overhaul, proposing an investment of up to £200 billion.
Household energy bills could increase by up to 25 per cent by 2020, the regulator warned.
Ogfem chief executive Alistair Buchanan said: "Our evidence shows that Britain has a window of opportunity to put in place far reaching reforms to meet the potential security of supply challenges we may face beyond the middle of this decade.
"We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security. Acting earlier will also help keep costs as low as possible for consumers and business," he added.
Ofgem has put forward a range of options for consultation, which include improved market signals, obligations on suppliers and capacity tenders to help meet carbon targets, and more structural reform.
The combined factors of the global financial crisis, international demand for investment in energy, rigid EU emissions targets and the closure of old power stations signalled the need for reform, according to the organisation.
A recent survey by consumer watchdog Which? revealed that more than a third (38 per cent) of people are worried about paying their energy bill, with some respondents using their savings to ensure they could afford it.
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