Energy bills could approach £5,000 a year by 2020

24 June 2009

Research from uSwitch.com warns that if current price trends continue, the average annual household energy bill could be more than £4,700 a year by 2020.

Uswitch claims that in 2004, the average bill size was £580 - today it has leapt to £1,243, which is 114% higher.

According to Ernst & Young, investment in Britain`s energy supplies will cost an estimated £233.5 billion (including £112.5 billion for renewable energy generation), which will add around £548 a year onto household energy bills for the next 15 years.

A debt expert for Think Money said: "If energy bills do rise as predicted, we may see more people struggling with debt and possibly ending up in fuel poverty - which is when a household is spending at least 10% of their total income on their energy bills.

"It is essential that people think about ways of coping with increases like this - for example, investing in their home and making it more energy efficient."

---

Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.