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Energy bills may rise by £600 a year  

Credit:  By James Edgar | 13 Mar 2014 | www.telegraph.co.uk ~~

Household energy bills could rise by more than £600 a year within six years to help power companies keep the lights on, the consumer group Which? has claimed.

The watchdog has written privately to the Treasury before next week’s Budget to warn of rising costs.

The group predicted that energy companies would need to spend £118 billion on new infrastructure between now and 2020.

This would include building power stations, replacing grids and erecting wind farms as part of a drive to sustain the power supply and cut down on carbon emissions.

Which? believes this cost will inevitably be passed on to consumers, adding the equivalent of £640 a year to household bills.

This would mean that the average bill would reach almost £2,000 a year, even if wholesale costs of gas and electricity remained stable.

In December 2013, the Treasury released estimates of planned infrastructure investments up to 2020 and beyond. As a result Which? has written to the Government demanding action.

The group is campaigning for a market investigation to find out if consumers are paying a fair price for energy.

Richard Lloyd, the executive director of Which?, told Sky News: “I don’t think consumers know that this is heading their way and that the decision has already been made by the government.

“This means one thing, that household bills are set to rise, and to rise for many people very steeply for the foreseeable future.”

The issue of rising energy bills has become a crucial one for political parties.

In the past three years, the Big Six power companies have increased prices by more than a third.

Ed Miliband promised last year to freeze costs to households for two years if Labour wins the next election.

George Osborne, the Chancellor, responded in his Autumn Statement by reducing green levies on power companies to knock £50 off the average bill.

Source:  By James Edgar | 13 Mar 2014 | www.telegraph.co.uk

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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