Household annual energy bills could rise to more than £4,000 in 10 years' time, almost four times higher than they are today, according to new research.
Forecasters from uSwitch.com concluded that on current trends, the bills would reach £4,185 by 2020, compared to £1,243 at present.
The research from the price comparison service is based on pricing trends over the last five years, taking into account inflation and the cost of cutting carbon and improving energy efficiency.On top of that, the government's committment to securing the country's longer-term energy supply, allowing them to roll-out smart meters in homes, will cost taxpayers an additional £548 a year, meaning the cost of energy to each household could be as high as £4,733 within a decade.
The uSwitch.com analysts also believe that the eventual end of the recession, which they predict will happen in 2011-2012, will see a global increase in energy demand, driven by rising economies such as China and India, which will put upward pressure on prices.
Ann Robinson, director of consumer policy at uSwitch.com, said the figure was a "wake-up call" and households would have to adapt accordingly.
"The Government has been banging the drum for energy efficiency for a while now, but consumers have been reluctant to spend money on these measures," she said. "As a result, energy efficiency has been massively underperforming even though it is one of the biggest defences we have against escalating energy costs.
"We also have a competitive energy market, and yet less than 5 per cent of consumers are on the most competitive energy plans – most people are paying far more than they have to for the energy they use....MORE