Plans by the UK for a £200bn ($313bn) investment in power infrastructure by 2020 could be derailed by soaring energy bills, on course to plunge average households into fuel poverty by 2015, finds the Financial Times.
Energy bills have almost doubled as a share of median income since 2004 and are set to hit £1293 next month, or 6 per cent of median household income compared with 3.3 per cent in 2004, according to the paper’s research.
A continuation of this trend to 2015 – when the UK’s next election is due – could be politically impossible, forcing a backtrack on new investment such as a big expansion of wind power.
Energy costs have outpaced household incomes by a factor of six since 2004, finds the Financial Times. The average dual fuel energy bill has climbed 117 per cent in the past seven years, while median household income has increased 18 per cent.
On present trends, energy costs would consume 7.4 per cent of median household income by 2013, 8.2 per cent in 2014, and 10 per cent in 2015.
The UK’s commitment to transforming its power sector was also recently brought into question by the statement of Chancellor George Osborne on 3 October that the country would not lead Europe in cutting its carbon emissions.
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