Are we looking at £2,000 fuel bills?
The National Audit Office has warned us all that energy bills could rise by around 50% over the next six years, outstripping inflation and basically leaving everyone in a position where no-one can afford to pay for it.
The NAO says in a report: "The available projections suggest that increases in both energy and water bills will continue to outstrip inflation, on average, up to 2030."
Angela Knight, chief executive for Energy UK, said that new research shows that energy prices could rise by 46% in the lead up to 2020. So, in short, from 2004, that means that prices will increase by 260%. By 2020, bills could be over £2,000.
Knight said: "The industry has become a lightning conductor for the general concern about the cost of living. As a result we stand accused for things that we do, for things that we don't do, for things that we are responsible for and things that we are not … this is not an understood industry."
Understood or not, we all know that prices are going up more sharply than wage increases and that any lack of transparency in the sector isn't our fault. Bill prices haven't been justified or explained and no-one seems to be doing anything about it, even though it looks like certain companies are indulging in flagrant blackmailing of the government by threatening further price rises if green levvies don't change.
The NAO is recommending that the Treasury needs to publish the expected overall impact on our bills in a bid to promote transparency. Amyas Morse, head of the National Audit Office, said: "Government and regulators do not know the overall impact of planned infrastructure on future consumer utility bills, or whether households, especially those on low incomes, will be able to afford to pay them. It seems critical to know 'how much is too much', based on reliable information."