After the energy giants raise their bills, get set for ANOTHER hike

ENERGY bills are set to rise again, with regulator Ofgem warning that soaring energy costs are expected to go up still further while annual Governmentimposed green taxes will virtually double to £13.5billion.

The warning comes after most of the Big Six energy companies that dominate the supply of gas and electricity to homes have pushed up prices.

Npower, ScottishPower, EDF and Eon have all increased their standard tariffs, with Eon being the latest to do so last week, when it said there would be an average 8.8 per cent rise for its 2.5million customers from April 26.

The energy companies have blamed rising wholesale energy costs as well as the cost of Government schemes, such as the installation of smart meters, for their decision to push up bills.

Now, figures from Ofgem show the wholesale energy price rose 22 per cent in the year to February. The regulator said it expected ‘additional upward pressure on costs as we get further into 2017’, which it attributed to rising demand outstripping supply.

It also said: ‘The costs associated with supporting renewable and low-carbon electricity generation are also expected to rise further.’

The Office of Budget Responsibility provided figures alongside the Budget that showed the soaring cost of green levies included in energy bills. These subsidise wind farms and solar panel installations, as well as home insulation schemes.

They are set to rise from £6.9billion this year to £8.7billion next year and £13.5billion in five years’ time – double today’s level.

Ofgem reckons green taxes currently account for £80 a year on the average energy bill of about £1,100.

‘Prices are set to go up still further,’ said Peter Atherton of Cornwall Energy. ‘Every time a new wind farm or a solar panel farm opens, it extends the cost to consumers.

‘Most of these levies go on the electricity bill rather than the gas bill. Prices have been rising because of higher commodity prices.’

Ofgem commented that ‘sustained increases’ in the wholesale price of power would feed through to energy firms’ costs, putting pressure on bills even when they had bought energy on long-term contracts that allowed them to smooth out short-term changes to prices.