Increased wholesale power prices: Energy bills to double in 5 years
>> Tuesday, July 19, 2011
Recently, the British Government has sketched out proposals for the construction of newer power stations and nuclear plants to swap the existing ones. The Government is indented to a substantial move away from fossil fuels including gas, coal and oil and power generation to fulfill the UK and EU emissions projects. According to the strict estimates the project has cost about £ 200 billion and price will be transferred on to the consumers in the form of increased energy bills. Even though the Government has guaranteed to keep the prices up to control however, more announcements are to come regarding the fuel prices by August.
According to analysts, with this announcement, household energy bills are expected to see the rise of up to 40% by the end of this year, as the wholesale gas price have got a recorded rise, and that is far more than calculated in the previous months. It would definitely put a high stress on the consumers already striving for the food and fuel prices. Conservative calculations also reveal that energy bills will tend to rise by 50 per cent over the next 20 years to finance the power generation projects, with the annual average bill up by £500, to £1,500 a year. But experts are of the opinion that actual figures will be considerably higher.
As the news went live, British Gas, one of the leading energy suppliers in Britain, announced the domestic tariffs for gas by an increase of 18 percent and for electricity by an increase of 16 percent that is 30% more than the last year. 9 million British energy consumers will be under pressure of that rise by paying £190 more a year. The company points to the increased wholesale power and gas prices, the casualty for that raise. The trend is much likely to be followed by other big gas suppliers. British are facilitated by 6 major energy suppliers, so it is not going to be an easy getaway.
However, a calm and neutral thought says that increased prices do not happen in vacuum. They indicate the elementary ills in the energy system and they will bite the economy repeatedly if left untreated. Currently, Britain is depending on the imported fossil fuels to supply a third of energy that would get half in less than 15 years. The ultimate truth is 60 per cent of the world’s gas assets lay in Russia and Middle East. Domestic energy bills follow international trends. When wholesale gas prices go up, so does the living cost in Britain.
Author Bio: Avelina Marshall is an expert author, writing genuine informative articles for wholesalers, businessmen, traders and manufacturers in http://blog.wholesalepages.co.
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