Many of us may struggle to afford energy in the coming years due to a sharp increase in the price of energy. These were the words of Bobby Collinson, the Managing Director of Power Efficiency, an energy consultancy.
Mr Collinson told ELN: “I see prices actually coming together as a perfect storm in the next three to five years from a number of factors and push energy prices probably to the highest it’s ever been.”
These factors include wholesale prices increasing, environmental taxes such as the Carbon Reduction Commitment scheme coming into play and the effects of Electricity Market Reform.
Mr Collinson added: “If these come together at the same time, you could see prices increasing 50-100% at a time when we’re still going to be fragile as an economy. There’s going to have to be a reduction in energy.”
The consultation for the EMR opened in mid-December and runs until the 10th of March 2011. It aims to develop and deliver a new market framework that will enable the cost effective delivery of secure supplies of low carbon energy.
Mr Collinson said that reform was needed if we were to cope with our energy consumption: “Our demand in the UK is continuing to increase- our grid and infrastructure is not designed for the doubling of demand that is predicted so we have to do something if we want the lights to stay on, so Electricity Market Reform is needed.”