50% Energy Bill Increase Over Six Years Says Energy UK
By Anne Lewis-Schneider
EDF is the fifth of the Big Six Energy Companies to announce increases in energy bills with an average of 3.9% added to customers fuel bills. Energy UK has issued a warning that this is just the beginning and that energy bills for households could increase by a further 50% over the course of the next six years. Energy companies, amongst them RWE have said that they are of a mind that security of a steady supply of energy is more important than the affordability factor.
Energy UK chief executive Angela Knight has argued the point that the UK has the lowest gas prices in the EU and also has one of the lowest prices for electricity. She went on to say that it all boils down to what she calls the trilemma of factors which include energy security, decarbonisation in accordance with the EU and affordability. These three things, she said, are what are putting the pressure on the upward trend of prices. Angela Knight maintains that the energy industry as a whole has become a source for concern as far as cost of living is concerned. She added that this placed the industry in a situation of damned if you donít, damned if you do. She also said that the energy industry is one that is little understood in general.
Investment bankers UBS have explained that household energy bills have increased by 70% since 2004 and was expected to continue to rise by a further 46% by 2020. The bank also laid the blame for most of this at the door of government, siting network costs and government policies as the primary cause. Andrew Wright of Ofgem has agreed with the report in part, vacillating over the assumed network upgrade costs. Of the three major concerns the Big Six and RWE npower in particular state that energy security is the most important factor.
EDF is the fifth energy company to increase prices over the past few weeks and with an increase of just below 4% was welcomed and an online source has said that this low increase should shame the other four members of the Big Six who have announced price increases in the region of 9.1%, and that EDF were to be lauded for not following the other companies like a flock of sheep as it were.
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