Energy bills are likely to rise, say energy bosses
- Published on Tuesday, 07 December 2010 12:34
- Posted by Scott Buckler
Bosses of the UK's leading energy companies have told a committee of MPs that bills are likely to rise in years to come
They told the Energy Committee that the "inevitable direction of wholesale prices" meant domestic bills would get more expensive over the next decade.
Five of the big six energy suppliers were represented at the House of Commons committee.
One suggested that prices could rise by between 15% and 25% by 2020.
The group of companies argued that the energy market was still competitive and profit margins were volatile.
Bosses of British Gas, EDF Energy, E.On, Npower and Scottish and Southern Energy appeared MPs.
They were called to give evidence after some had raised prices for domestic customers this winter.
Phil Bentley, of British Gas, said that higher wholesale prices and distribution charges were likely to push up the cost of domestic bills in the next decade. He quoted the 15% to 25% price rise, predicted by Ofgem, by 2020.
They all pointed to the "fundamental issue" of energy efficiency measures being key to cutting domestic use of gas and electricity, and - in turn - this would cut bills.
Mr Bentley said that private landlords should be encouraged to make their homes more energy efficient.
Source: ©BBC News