Most of us think twice now days before turning up the heating during winter, and according to a newspaper article, it looks as if this situation will continue as the government has admitted electricity costs 15% more because of its green policies. It gets worse, as by 2020 it is estimated electricity will cost 27% more than it would have done without these green policies, while gas will cost another 7% more. This is expected to add another £200 to the average household energy bill unless usage is cut.

Apparently the Coalition thinks bills won't necessarily increase as more consumers should have better insulation, but consumer groups disagree. The Department for Energy and Climate Change have calculated the risk if wholesale energy prices increase more than expected and have found this could push up energy costs by as much as 36% from 2010 levels, while gas costs could increase by 44%. This means the average householder would need to find another £500 a year to pay their energy bills. Consumer groups think the government should reform their climate policy to make it more affordable although they have pointed out that people can choose to switch to more competitive pricing plans to save money.

According to the Department, retail energy prices will continue increasing until 2030 due to increasing wholesale costs and network costs, as well as climate change policies. It says these climate change policies will help people use fuel more efficiently and will ultimately reduce our dependence on fossil fuels.