Energy bills to rise faster than predicted
New research suggests bills will rise by £127 by 2020, almost twice what the government is predicting, as consumers continue to shun more energy efficient devices
Energy bills are on track to rise by almost 98% more than Government statistics have suggested, according to a study carried out by think tank IPPR, on behalf of independent charity Global Action Plan.
The main reason behind the expected increase is the lack of consumers purchasing more energy efficient appliances.
Confusing labelling and economic downturn behind poor uptake
Last year, the government claimed that although energy bills would rise, in part due to green subsides, these costs would be partially cancelled out by consumers purchasing more energy efficient products.
However, according to the report: “The under-performance of products policy means that domestic energy bills could be £63 higher in 2020 than the DECC currently projects.”
The report blames confusing product labelling and the economic downturn for the slow uptake of energy efficient appliances. It has also been pointed out that consumers will have to spend significant amounts of money in order to upgrade their existing appliances.
‘Consumers are hit twice when faced with rising energy bills’
CEO of Global Action Plan Trewin Restorick said: “Consumers are hit twice when faced with rising energy bills. They’re paying for unnecessary electricity usage due to energy-inefficient appliances, and then forking out for ever-increasing subsidies to produce energy that is not actually needed in the first place.
We need to boost the uptake of energy efficient appliances in the UK. Financial incentives that directly benefit customers’ pockets are key.”
A spokesperson for DECC said: “Our products policy is working. We now have eco-design minimum standards covering 19 energy using product groups, which are helping consumers use less energy, leading to lower bills.”
DECC added that the savings figures were based on the numbers from 2007 to 2011 and were conservative.