The Government have warned consumers that gas and electricity prices will increase as they attempt to reform the UK’s energy Market.
New proposals that are being put forward are designed to “keep Britain’s lights on”, create cleaner electricity and hopefully reduce carbon emissions. The proposals are expected to slow any rise in energy bills.
As it stands there is an energy gap in the market and an investment of £110bn is needed to rectify this. The gap has appeared as the demand in energy increases and because power stations are no longer being commissioned. The UK is estimated to lose a fifth of its electricity-capacity over the ten years.
The new measures will include more wind turbines and nuclear reactors with extra reassurance that they will be paid a rate for the power that they generate in the form of a long term contract and a price guarantee. Without these measures the UK will become more reliant on gas supplies overseas.
Consumers are now being urged to be more aware of how much gas and electricity they use on a daily basis. Making minor changes to how much energy they consume can help lower energy bills.
Energy minister Ed Davey commented: “Leaving the electricity market as it is would not be in the national interest.
“If we don’t secure investment in our energy infrastructure, we could see the lights going out, consumers hit by spiralling energy prices and dangerous climate change.
“The reforms will also be better for the economy, leaving us less vulnerable to rising global energy prices.
“By reforming the market, we can ensure security of supply for the long-term, reduce the volatility of energy bills by reducing our reliance on imported gas and oil, and meet our climate-change goals by largely decarbonising the power sector during the 2030s.”
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By Amanda Bainbridge