Energy bills set to rise with dwindling resources

Friday, February 5th 2010

The watchdog for the energy industry has claimed that utility bills will end up 25 per cent more expensive in ten years' time due to fears over the ability to supply enough power to the UK.

Ofgem revealed in a report that the global economic recession, strict environmental targets, closing power stations and dependency on the importation of gas will mean that the sector will struggle to cope with demand in the near future.

Alistair Buchanan, chief executive of the group, explained that the free market is not providing enough investment to keep energy supplies up, which will lead to an increase in the prices of gas and electricity.

"The higher cost of gas and electricity may mean that increasing numbers of consumers are not able to afford adequate levels of energy to meet their requirements," the report warned.

However, energy firms recently announced that 7.5 million homes in the UK will receive a nine per cent reduction in their bills after the wholesale price of gas dropped.