Energy prices rise for UK consumers

Huddersfields residents will have to shell out an average of £9 a month to buy electricity from the new generation of gas-fired power stations.

The Government’s flagship energy policy, which was unveiled in May and aims to cut CO2 emissions by 30% by 2030, will see consumers pay more for the electricity they use, according to figures published on Wednesday.

Gas power plants, which were expected to come online by 2020, will start to generate electricity for households by the end of the decade.

Households will have been paying an average £9.80 a month for gas, or £1.85 a day more than they were paying in 2020, according an analysis by consumer group GasPriceWatch.

But the prices will rise for the next decade as a result of the cost of installing the new plants.

In the UK, the average household will pay £2,566 a year for electricity compared with £1,972 in 2020.

“This is an expensive solution, but a good one.

It will save consumers money,” said GasPricewatch chief executive Matt Pickett.

Mr Pickett said the policy would save consumers more than £10 a year in bills.

He said households would have to pay about £3,000 a year to meet their energy needs, which would leave them with a budget surplus of more than 10%.

“The Government should have invested in this sooner, but we believe this is the right approach to save consumers’ money and ensure that the Government is doing the right thing,” he said.

Energy Secretary Amber Rudd has previously promised to make householders pay the difference between the cost and the cost to operate the gas plants, a move that is likely to be opposed by the business and energy industries.

An analysis by energy analyst Mark Porter showed that if gas-powered power plants were built in 2020 at a cost of £5 a gigawatt hour, they would produce around 1,600 megawatt hours of electricity per year, a saving of £2.6 billion a year.

At that price, gas plants would generate nearly half of the electricity needed by the whole of Britain.