The cost of the average household utility bill is rising and all of the 'Big Six' energy providers have now announced an increase in the cost of their tariffs.
E.ON was the last company to raise its tariffs – a move that will come into effect in January of next year. This increase in tariffs will see the cost of gas bills rise by 9.4 per cent and electricity bills by 7.7 per cent.
Electricity bills for UK consumers have risen more than 70 percent since 2005, largely due to increases in the cost of gas and coal feedstock. And this is a trend that is set to continue, according to a new report.
A study has now been released, predicting that the average household electricity bill could increase by 54 per cent by 2020. Currently, a home's electricity bill stands at an average of £454 but this could rise to £699 by the end of the decade.
The data comes from a study entitled 'Unwrapping British energy bills to 2020', published by Bloomberg New Energy Finance. This dramatic increase in cost can be largely attributed to wholesale energy costs as gas-fired electricity displaces coal, the introduction of a 'carbon price floor' and the rising subsidy bill as renewable energy volumes increase, according to a press release from the company.
Mike Lawn, head of power research at Bloomberg New Energy Finance, said: "These electricity price increases will reflect the fact that the UK is transforming its mix of generation, pushing renewables close to 30 per cent by 2020, largely at the expense of coal, and with a greater dependence on rising gas prices.
"The only way households and businesses can mitigate the impact of higher electricity bills will be by improving energy efficiency."
There are a number of measures that households can take in order to improve their energy efficiency and with the government's Green Deal Cash Back scheme, 2013 could be the perfect time to up the level of insulation in your home or install solar panels, decreasing the annual cost of electricity used.