Energy bills set to leap by £240 by 2020

Households are set to see their annual energy bills leap by £240 by 2020, as the cost of implementing green technologies trickles down to consumers.

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The forecasts from utility firm RWE npower outline that annual energy bills are set to rise from £1,247 to £1,487 over the next seven years, as support for low carbon technologies takes up 5.5% of annual energy bills by 2020.

Currently this figure stands at £34, or less than 3% of the average annual energy bill.

RWE npower chief executive Paul Massara, said: “Government policy is rightly delivering the transformation we need to address the UK’s poor housing stock and encourage investment required in new infrastructure.

“But achieving these aspirations comes at a cost, and this is what needs to be clearly communicated to consumers.”

Greg Barker, minister for energy and climate change, argued that global gas prices were to blame for escalating energy bills.

“Global gas prices, not green policies, have been primarily pushing up energy bills. Onshore and offshore wind farms have been a key low-carbon strategy,” he said.

“That is why it is vital we crack on with securing investment in a diverse energy mix that includes renewables and new nuclear, as well as gas.

“We must also continue to drive up the energy efficiency of the nation’s housing stock, particularly the homes of the most vulnerable households.”

He went on to argue that government energy policies will make consumers savings in the short and long-term. Currently this is saving consumers an average of £65 on their energy bills, a figure that is set rise to £166 by 2020.

The npower report also revealed that energy company profits have soared from £18 on the average dual fuel bill in 2007, to a current figure of £59.