Ofgem warns consumer bills may rise by 25% over next 10 years to ensure climate change targets are met
Ofgem, the UK's electricity and gas regulator, has said £200bn investment is needed in power plants and infrastructure over the next 10 years to meet the to secure supplies and meet climate change targets.
In a report published today, it added that consumers could expect to pay between 14 and 25% extra on their energy bills in order to meet the cost. Price spikes could add 60% to bills in the interim, Ofgem warns.
"These are big challenges. Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets," said Ofgem chief executive Alistair Buchanan.
Greg Clark, shadow energy spokesman, called the combination of fears about price hikes and interrupted supply, a “horror show.”