The government has admitted its proposals to make energy supply more environmentally-friendly will push up future household bills.

This should be a further trigger to ensure you’re on the cheapest energy tariff NOW to avoid squandering much of your hard-earned cash.

Westminster wants to dramatically cut carbon emissions and deliver energy via greener means. The proposals form part of The UK Low Carbon Transition Plan, published today.

Though this comes at a cost to families. The Department of Energy and Climate Change says that between 2015 and 2020, household energy bills will rise by a typical £92, or 8%, a year.

Questions have also been asked as to why, while revealing prices could soon rise, the government is failing to ensure consumers are fairly treated at present.

The price energy firms pay for power has fallen by around 50% over the past year, yet household bills have only dropped by a maximum 10%.

Save £250 a year

Millions of households have never switched energy provider so are already paying too much, even before any price rises.

It’s worth immediately checking your energy tariff via a comparison site to see how it compares to other plans. If you’re not on the cheapest tariff, then switch.

The full process is outlined in the Cheap Gas & Electricity guide.

Price comparison site Energyhelpline.com says a typical household that has never switched provider saves 20% by moving to the cheapest gas and electricity tariff. That equates to a £250 a year saving.

Archna Luthra, MoneySavingExpert.com consumer products analyst, says: "Addressing renewable energy is important, but for the government to suggest an increase in prices while it does nothing about the huge energy bills people are paying is ridiculous.

"Wholesale prices (the price power firms pay for energy) have dropped dramatically in the past year but this hasn't resulted in significant price drops for households."

Further government measures

The plans also include:

  • Greater powers for the energy regulator Ofgem to protect consumers from power firms.
  • That the most vulnerable households will also get money off their bills.
  • That up to 7 million homes will receive a 'pay-as-you-save' energy makeover. This means that the cost of making homes greener, for some, will be paid for by the savings from subsequent cheaper energy. The government says up to £1 of every £3 spent on heating is wasted in a poorly insulated home.

Further reading/Key Links

Full switching process explained: Cheap Gas & Electricity

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