6 August 2008
British consumers could see their gas and electricity bills rise even higher following the government's decision not to give the go ahead to a new coal-fired power station in Kent, it has been claimed. According to energy provider E.ON, the verdict on the station at Kingsnorth near Rochester has huge implications for generating capacity in the UK and for household finances. Jonathan Smith, a spokesman for the company, told Sky News Online that if the decision is indicative of a wider reluctance to move towards coal then the UK may have to become reliant on gas for up to 80% of its overall electricity supplies. "The price of gas has an effect on wholesale electricity, so if you have 80% of electricity generated from gas, it's a fair bet the price would go up," he remarked. His warning comes after EDF Energy and British Gas both raised the price of their gas by 22% and 35% respectively. Electricity prices also increased. Meanwhile, the government is planning a windfall tax on energy providers that would see them reallocate some of their profits towards social assistance programmes to help those struggling to pay their bills.
© 2008 Adfero Ltd
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