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industry & government news

BRITONS PAYING 40% MORE FOR ENERGY

THAN IN 2015, ANALYSIS REVEALS

ENERGY BILLS HAVE risen by 40
per cent in five years, taking average
UK household costs up to a record of
£2,707 a year, research has revealed.
Comparethemarket’s study examined
the costs of energy, home and motor
insurance since 2015, and found that
gas and electricity price increases were
largely responsible for the changes.
The analysis says financial pressures
have worsened despite the energy
price cap introduced at the beginning
of 2019. Dual fuel bills now cost an
average of £1,813 a year, a 40 per cent
hike from £1,289 in 2015. These figures
were based on usage information
entered by comparethemarket.com
customers, and are higher than Ofgem’s
typical domestic consumption values.
According to The Guardian, the
energy price cap has led to many
providers, particularly the largest ones,
raising their prices.
Simon McCulloch, of
comparethemarket.com, said: “A lot of
attention during the general election
was devoted to financial difficulties that
many people face around the UK.
“These statistics are a stark reminder THE COST OF LIVING HAS RISEN FOR MANY BRITS IN RECENT YEARS
of not only the high cost of essential
services, but of the huge increases that 11.59 per cent pricier now than in 2015. “it will be up to the government to
have been seen in the past few years. The analysis draws attention to the consider if the market is working well
The average cost of energy, motor and regional disparities in utility costs, enough for the cap to be removed”.
home insurance is now £675 higher than finding that London households were Additionally, the energy regulator has
2015 – far above the rate of inflation.” paying £3,129 a year – over £400 more warned operators of the UK’s electricity
According to the Office for National than the national average. networks that it will cut investor
Statistics’ composite price index, items The energy cap is due to expire returns in a push to keep a cap on
that have risen in line with inflation are by 2023. Ofgem has previously said household electricity bills.

on these permissions. was targeting constituencies in the
Mrs Leadsom’s decision to Midlands and northern England at the CUADRILLA
halt fracking, announced on 2 December general election.
November, was widely welcomed At the end of November, Francis
by environmental groups and Egan, Chief Executive of Cuadrilla, told
protesters who live close to the site the annual meeting of its biggest
near Blackpool where Cuadrilla had shareholder, Australian energy services
operated two wells. During 2018 company AJ Lucas, that he had “scaled
and 2019, drlling at the site caused back” the British business in recent
numerous earth tremors, the biggest months but it remained focused
of which measured 2.9 on the Richter on reaching a “sensible, technical
scale in August last year. resolution” to the UK moratorium.
Some industry insiders had The Department for Business, Energy CUADRILLA HOPES TO RESOLVE THE FRACKING BAN
suggested at the time that the and Industrial Strategy said: “The
moratorium was “electioneering” government has been clear that it will on fracking until the science shows
given that the Conservative party not support or remove the moratorium categorically that it can be done safely.”

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16/01/2020 14:53
News.indd 4
News.indd 4 16/01/2020 14:53