Energy bills to increase by 35% by 2020

A new Which? report has warned that the energy bill for a poorly-insulated home could rise by over a third (35%) by 2020, potentially leaving 4 million households in fuel poverty.

The annual energy bill for a 3-bedroom semi could rise to over £2,600 over the next decade, while a family living in a detached house could be faced with a bill of almost £4,000.

More than seven in ten people (73%) said they would worry about being able to afford an increase of a third in energy prices, compared to almost three in ten (28%) who are worried about paying current bills.

Rising wholesale prices, a growing dependence on imported energy and investment in capacity and renewable energy will all add to domestic bills over the next decade.

Which? editor, Martyn Hocking, says:

“Energy is going to get a lot more expensive over the next decade so the only way to avoid bigger bills is to use less of it.

“The Government must take urgent action to stop bills from spiralling out of control and to help consumers make their homes more energy efficient, otherwise millions of people will be faced with crippling energy bills in the future.”