(UK) Ofgem: energy bills will be 'unaffordable' unless £200bn spent, watchdog warns

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The report gave warning that millions of families could move into fuel poverty, when as much of 10 per cent of their income was needed to pay their energy bills. "The higher cost of gas and electricity may mean that increasing numbers of consumers are not able to afford adequate levels of energy to meet their requirements," it said.

Some independent energy experts believed that Ofgem was being too optimistic. USwitch, the price comparison website, said it was possible that in 10 years' time bills could hit £4,730.

Anne Robinson, director of consumer policy a uSwitch, said: "The £5,000 a year energy bill may seem like an outside possibility, but we have to remember that energy bills doubled in the last five years alone and that the huge investment needed to keep the lights on in Britain will alone add £548 a year onto our bills."

Ofgem also warned that factories and offices could be forced to go "off grid", as was the case during the exceptional week of snow and cold at the start of last month. This means their electricity supply shuts down, with little notice, and they are forced to rely on a backup generator, or send their workers home. During January, 95 customers, including a brewery in Liverpool and some car factories, were forced "off grid".

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/7146110/Ofgem-energy-bills-will-be-unaffordable-unless-200bn-spent-watchdog-warns.html