As reports continue to emerge about rising energy bills in the UK, a major gas and electricity supplier has claimed that if current patterns continue, the cost of payments will be higher than mortgage payments in the next five years.
That’s according to chief executive of First Utility Ian McCaig, who also suggested that consumers should look to turn down the heating in their homes to reduce energy costs. He added that a review needs to be undertaken in order to minimise how much impact bill payments have on the consumer.
However, Mr McCaig also championed the Green Deal and the fact that interest in the scheme is “pretty high”. However, he suggested that more alternative initiatives should be introduced in order to further encourage the uptake of energy efficient solutions.
In the most extreme case, Mr McCaig suggested that if things continue or get worse, energy bill payments will far exceed other monthly or yearly payments in other areas.
“In fact, given that interest rates are low and look like staying that way it could easily be the case that over the next five to 10 years we’ll see energy bills even overtake mortgage costs for some consumers,” he stated.
Research from First Utility has found that UK consumers have been on the receiving end of an average 8.5 per cent rise a year in dual-fuel bills, with the average payment of £1,420. The firm predicted that this could rise to £3,761 by 2025.
There are a number of solutions to combat rising energy costs, whether this be, as Mr McCaig suggested, by turning down the heating or switching electrical products off when leaving the house.
For even greater savings, solar panels could be the solution to cutting energy costs dramatically over the course of a year.
Consumers will also be able to benefit from the feed-in tariff, with premium rates being paid for electricity generated which can then be fed back into the National Grid.