Warning over £300 hike in electricity bills

HOUSEHOLD electricity bills could be pushed up by around £300 a year by 2020 as a result of a continued reliance on fossil fuels to provide energy, environmentalists say.

Friends of the Earth hit back at claims that “green taxes” were causing energy bills to rise, with a report which suggests that investment in fossil fuel plants, rather than renewables, would leave British households footing the bill for the increasing costs of coal and gas to make electricity.

The report said that if the six biggest energy companies were to stop building new renewable energy sources such as wind power, and forged ahead with new fossil fuel plants, householders would see rises in bills.

According to the report, electricity bills rose by 30 per cent in real terms between 2000 and 2010, while gas bills jumped 78 per cent. The rises were largely due to increased costs of coal, which rose by 71 per cent, and natural gas, which rose 90 per cent, Friends of the Earth said.

Meanwhile, British Gas yesterday pledged not to raise prices this winter. Its £100 million “winter warmer” package is to include a discount for low-income customers.