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| Fear of 'huge' energy bill rises | Fear of 'huge' energy bill rises |
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| Domestic energy bills in the UK could rise by 60% by 2016-17, the energy regulator has warned. | Domestic energy bills in the UK could rise by 60% by 2016-17, the energy regulator has warned. |
| However, this would be the "spike" in bills, with prices estimated to rise between 14% and 25% above inflation by 2020, the Ofgem report explained. | |
| The review also said that £200bn of investment was needed to secure supplies and to meet carbon targets. | |
| Volatile gas markets and power stations nearing the end of their use were the chief concerns, the regulator said. | |
| Possibilities | Possibilities |
| The report was the result of Project Discovery, a scheme that Ofgem started in March in which it outlines four possible scenarios for energy use and security in the next 10 to 15 years. | |
| Early action can avoid hasty and expensive measures later Alistair Buchanan, Ofgem | |
| It pointed out the need for investment came at a time of volatile world energy prices and Britain's increasing dependence on gas imports. | |
| This exposure meant that supply disruptions across the world could affect prices. The scenario in which prices could spike by 60% was that of a strong resurgence in global economies along with missed renewable and carbon targets. | |
| Significant changes are needed in the way energy is generated and consumed, the report added. | |
| "These are big challenges. Consumers are already enduring high energy prices," said Ofgem chief executive Alistair Buchanan. | "These are big challenges. Consumers are already enduring high energy prices," said Ofgem chief executive Alistair Buchanan. |
| "This is why we are consulting with consumer and environmental groups, the academic community and industry to ensure any policy proposals we make are grounded on the best evidence available. Early action can avoid hasty and expensive measures later." | "This is why we are consulting with consumer and environmental groups, the academic community and industry to ensure any policy proposals we make are grounded on the best evidence available. Early action can avoid hasty and expensive measures later." |
| The report said that recent events such as the Russia-Ukraine gas crisis had raised concerns about the security and price of gas supplies at a time when many European countries were becoming increasingly dependent on imports. | |
| It said that the retirement of older nuclear plants and closure of coal and oil plants in the UK by the end of 2015 could "pose a threat to security of supply". | |
| Double the recent level of investment was needed, the report suggested. | |
| Emissions | |
| Mr Buchanan said that the good news in the report was that emissions would fall by more than 40%, describing the climate change targets as "very, very tight". | |
| The report came as the UK was facing the effects of the financial crisis, an acceptance that it was "no longer an energy island", and that it would see a revolution in the approach of power generation, he added. | |
| He said there could never be a guarantee that the lights would stay on, but by looking ahead, the industry could be prepared for the changes needed and consumers would not pay for these changes being made too late. | |
| The report is now going to consultation, with responses required by 20 November. | |
| What is your reaction to these forecasts? How would the predicted 60% rise affect you? Will you struggle, or are you already struggling, to afford your energy bills? | What is your reaction to these forecasts? How would the predicted 60% rise affect you? Will you struggle, or are you already struggling, to afford your energy bills? |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |