British families face a steep rise in energy bills over the next decade, with forecasts suggesting a £264 increase in electricity bills by 2030 due to soaring net zero costs.
Boston Consulting Group has warned that high prices are reducing electricity consumption, making renewable subsidies and grid upgrades a growing proportion of power bills, according to The Telegraph. If demand continues to decline, the average household electricity bill will increase by £264 by 2030, reaching £1,145, based on BCG calculations.
Net zero spending surge
This is due to a surge in net zero spending. BCG's Raoul Ruparel stated: "There is a focus on the destination - how we will generate energy in the future - but that is less relevant if the path to get there is too costly."
"Britain isn't an outlier because our system is more expensive: it's largely because of how we've chosen to pay for it."
EDF analysis shows £130 rise
An analysis by energy supplier EDF found that household energy bills will rise by nearly £130 by the end of the decade as the costs of the Government's net zero policies accumulate. Typical annual household bills will reach £1,790 by 2030, up 8% from £1,663 today. This is partly due to green levies and grid upgrades.
Currently, over one in three households will find it difficult to pay for their energy - just as bills are predicted to reach a three-year peak.
Price cap hike expected
Experts anticipate that regulator Ofgem will today (August 26) announce another 4% hike in its price cap for tens of millions of households from October 1, pushing typical bills to £1,941 a year. The latest bill shock is driven by the ongoing conflict in the Middle East.
