Energy bills could rise over 60%
Gas and electricity bills could increase by more than 60 per cent by 2016 without investment in new sources of energy.
The energy watchdog Ofgem today warned domestic energy bills could increase by between 14 per cent and 25 per cent by 2020 - with spikes of up to 60 per cent in the meantime.
The regulator has put forward four scenarios for the future of secure UK energy supplies - claiming up to £200 billion is needed to be invested.
The upshot of this investment is that customers could face price rises.
Ofgem chief executive Alistair Buchanan said: "Early action can avoid hasty and expensive measures later.
"Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets.
"However, there is still time to act."
The report claims if the economy recovers rapidly and there is significant investment in green technology, energy bills could rise 23 per cent by 2020 - with greater electricity demand as more use of electric cars and heat pumps.
If green stimulus packages from governments around the world come, bills will rise 14 per cent.
A further scenario is that countries focus on energy security over environment targets and competition for pushes up energy prices - could push gas and electricity prices up by 60 per cent by 2016 before falling back.
Finally a longer recession could lower investment, leading to greater dependence on imported gas - leading to prices rising by 22 per cent.
Which? energy campaigner Fiona Cochrane, said the UK should not face a situation where "we have to choose between paying a king's ransom for our energy or face the lights going out".
She added: "The way consecutive governments have passed the buck on this issue is tantamount to negligence.
"By ignoring security of supply for so long, they've saddled consumers with what could be a colossal bill."
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