he increases would deal another blow to families who have already been hit with increases of 40 per cent so far this year.
The prediction, from price comparison website energyhelpline.com, comes as electricity prices on the wholesale market hit a record high.
National Grid, the company in charge of distributing electricity around the country has warned that there is less surplus electricity in the system than previously thought. Even if just one of the UK's 38 major power stations fell out of action – as often happens – it would cause serious enough shortages for factories to be forced to shut down to save energy, it said.
Britain's ageing power plants have struggled this year, with record numbers falling out of action for emergency repairs.
National Grid's grim warning caused winter electricity baseload power prices – the key benchmark used by the industry – to increase by 2 per cent percent to £105 a megawatt hour, a record level.
Escalating gas and electricity prices this year are one of the reasons why inflation has hit a 16-year high of 4.7 per cent.
The forecast came despite the Met Office predicting that this winter could be much milder than average, which would mean power stations were put under less pressure.
Alan Asher, the chief executive of energywatch the consumer watchdog, said there was little reason for fuel bills to increase, saying the energy industry too often "talked up" price rises. "I think people have just lost their patience. The public are revolting. If we see rise of any significance in the New Yea the public will take to the streets."
Electricity can't be stored, so production needs to continually meet demand. The power grid has spare plants that only run at times when demand and prices are at their highest.
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1 comment:
This news is not unexpected as rumours have been circulating that prices may go up again for some time now. Now more than ever the consumer has to help themselves. The governments initiatives are a drop in the ocean but also offer little help to low earners in rented accommodation. I hope that the one thing we will all learn from this situation is how we can all change our habits at home to conserve energy and cut carbon emissions. Small things like turning lights off, not leaving appliances on standby and washing clothes in a cooler wash cycle can cut bills and the environmental impact. A few habit changes in the home could save up to one third of energy bills, looking at the figures quoted that would mean £500. Well worth saving.
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