Household energy bills are soaring as suppliers continue to push up prices. This is taking its toll on the finances of consumers, who are being warned that bills could rise by between 50% and 100% by 2020.
Adding further fuel to the fire, government green tax reforms will see another £2bn added to household bills within just two years.
Government green tax initiatives will add at least £35 to household fuel bills within 24 months, according to Energyhelpline.com.
UK businesses are also expected to be affected by the taxes, pushing the total impact on the nation to more than £2 billion a year.
Yet, it’s a series of reforms which will see energy bills shoot up by a staggering 100% by 2020. This includes ‘The Energy Company Obligation’, which requires energy firms to pay around £1.3 billion a year towards energy-saving initiatives. The price could be filtered down to households to cover the costs of meeting these targets.
Another plan in the pipeline that could hit consumers is the Carbon Price Floor initiative. From 1st April 2013, carbon emissions in the UK from electricity generators and energy intensive industries will face the prospect of being hit with a tax increase of £7 per tonne to £16 per tonne of carbon dioxide emitted. From 2020, this will rise to £30 per tonne, meaning businesses are paying 280% more than competitors in Russia and the US.
Mark Todd, director of independent price comparison service Energyhelpline.com, commented: “Rather than helping to push prices down, we calculate that Government policies are actually pushing bills up by at least £2 billion a year. There is also a big risk they are making UK industry uncompetitive and forcing jobs to go overseas to countries where energy is cheaper.”
Another government reform that could see household energy bills jump is the Draft Energy Bill. MPs hope to raise £110 billion of funds for investment in power generation, yet some have already predicted this could add £110 a year to the average energy bill.
“Government bodies need to think about the effects these new policies will have on consumers,” Mr Todd continued. “It is likely that increases such as these will push more households over the line into fuel poverty.”
The Asda Money Energy Compare & Save tool could help you to secure the best tariff for your individual circumstances.
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