The Bank of England recently predicted that energy prices are to soar over the coming months, threatening to substantially increase the number of people in debt in the UK and to push those already in the red, yet further in. Rising energy costs have been a concern for some time and consumers are really beginning to feel the pinch.
The Committee on Climate Change (CCC) announced that one factor contributing to the rising costs is the additional 11,000 onshore and 3,600 offshore wind turbines needed if the UK is to meet the 15% target for renewable energy production by 2020 as laid down by the EU Renewable Energy Directive. The cost of building wind farms is substantial, and these costs are to be passed on to the consumer.
It was also announced by Centrica, owners of British Gas, that wholesale gas prices have increased by 25% in the last 12 months, and this will significantly contribute to the rise in households’ energy bills in the coming months.
It is increasingly important that consumers compare energy prices on a regular basis to make sure they are getting the best possible deal. With so many providers out there competing for your valuable custom, it is imperative that you shop around. There are countless free resources available online where you can find the latest deals and in many cases it will be more cost effective to cancel your existing contract with your current provider and make up the cost in savings from your new provider.
The predicted increases in energy prices will inevitably affect many people who are already struggling to keep on top of bills. The National Debtline, a telephone advice line set up and run by the Money Advice Trust, have reported that the number of calls related to energy bills have increased by over 180% in the last 4 years. This constant increase is, sadly showing no signs of letting up in the foreseeable future.
All we can do is lessen the blow and take advantage of online comparison sites to make sure we are getting the best of a bad deal.