Energy Bills Could Rise By £200 In Next 6 Years

Energy supplier Npower has today warned property owners in the UK that their annual energy bills could increase by as much as £200 in the next six years if they do not implement energy efficient measures.

The supplier is one of the big six who are currently facing criticism for increasing their energy costs at a rate significantly above inflation. Now, they suggest that this pattern will not cease with an estimation that average annual domestic bills will increase from £1,123 to £1,330 by 2020.

However, in a report released by the energy supplier, there are suggestions that this increase could be curbed at £1,240 if households make the relevant energy efficient alterations to the home.

RWE Npower chief executive, Paul Massara, explained why some of annual energy bills could be increased: “The actual unit price of energy in the UK is one of the lowest in Europe – but bills are high because British houses waste so much energy. If we can increase the efficiency of the UK’s old and draughty housing, we can ensure that annual energy bills are some of the lowest too.”

This is reiterated by a spokesperson from the Department of Energy and Climate Change: “The impact of our social and environmental programmes will in fact lower energy bills compared to what they would be in the absence of our policies, by as much as £166 in 2020.”

The predictions made by Npower have been challenged by Ofgem, who believe that they may not be entirely accurate and have questions where the information has come from. Furthermore, the Labour party has today publish a paper demonstrating that people may be paying £100 more than they need to by staying loyal to an energy supplier rather than switching to a better deal.

Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, revealed: “It’s outrageous that energy companies are cashing in on their most loyal customers. In other industries companies have all kinds of schemes to reward their most loyal customers, but in the energy market loyal customers pay most. It is difficult to explain the reasoning behind these price variations other than the fact that suppliers are charging what they think they can get away with.”

Despite promises to freeze energy prices, it seems apparent that the cost to heat the home will never significantly fall without the action of the homeowner. Applying for an Energy Performance Certificate can help you understand what energy efficiency installations could save you money on your energy bills.

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