13.11.13
NAO warning about impact of energy prices on consumers
The massive need for new investment in infrastructure mean that energy and water bills may rise significantly, a new National Audit Office (NAO) report states.
Over two-thirds of the £310bn of planned infrastructure will be privately financed and operated, but paid for by consumers via price increases. This is likely to hit households with incomes in the lowest 10% particularly hard, and available projections suggest increases will continue to outstrip inflation, on average, up to 2030.
The NAO stated concerns around the lack of a common approach across sectors to forecasting bills on measuring affordability and calls for the Treasury to publish the expected overall impact on consumer bills and to consider the implications for bills before making policy commitments influencing infrastructure.
Amyas Morse, head of the NAO, said: “Government and regulators do not know the overall impact of planned infrastructure on future consumer utility bills, or whether households, especially those on low incomes, will be able to afford to pay them.
“It seems critical to know ‘how much is too much’, based on reliable information.”
Tell us what you think – have your say below, or email us directly at [email protected]
Image c www.freeimages.co.uk