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Report predicts price hike

UK householders could see their energy bills rise by an additional 20 per cent as the Government tries to meet its 2020 European Union emissions and renewable energy targets.

 

The Ernst & Young report, Costing the Earth?, predicts that the UK will need to spend in excess of £100 billion on the capital investment required to reduce its carbon dioxide levels by 20 per cent and to raise the proportion of renewable energy used to 20 per cent, up from 1.8 per cent in 2007.

 

Ernst & Young researchers estimate that UK consumers may need to spend an extra £5.3 billion - or £213 per household - through their gas and electricity bills to fund the capital expenditure.

 

The predictions were made on the back of fears that UK energy bills could rise by a further 40 per cent this year as a result of increased wholesale price volatility.

 

Any potential rise in utility bills, the report's authors said, could push more consumers into fuel poverty, which is set to rise up the agenda over the next 12 years.