Household energy bills could cost £600 more in 2050 if the UK keeps relying on gas for its energy, a new report reveals.
Investing in green energy is the best way to keep bills down, according to the report from the Committee on Climate Change, an independent body which advises the government on tackling climate change.
Bills would only be £100 higher than today by 2020 if the country invests in low-carbon energy, and consumers would have ‘insurance’ against possible rises in the cost of wholesale gas, the research showed.
Household energy bills are going up again this winter. All the major energy suppliers have now announced above-inflation price rises of between 6% and 10.8%.
Bills have already gone up by £600 since 2006. The majority of this increase was down to rising wholesale gas prices and suppliers’ costs. 62% of the increase in a typical household bill was due to the international price of gas going up.
Investing in green energy will have a greater impact on some households than others, however.
Homes that use electrical heating (less than 10% of all households) will see their bills rise more than those with gas heating if a low-carbon system is adopted.