First Utility’s chief executive predicts that energy bills are increasing so rapidly that if they continue at the same pace they could soon overtake mortgage repayments in some regions of Britain.
Ian McCaig stated the warning while explaining that energy policies need to be looked at again in order to help reduce the price of the energy bills and added that consumers need to think about reducing the amount of heat they use in order to help keep their costs down. Many critics have stated hat environmental policies of the Government that focus on energy schemes and wind farms are actually increasing the costs of energy bills.
McCaig went on to say that if things continue then some consumers are going to see their energy bills rise over top of many other bills that have been long considered the ‘more expensive’ household bills. He added that if interest rates remain low then over the next decade it is not crazy to say that energy bills will cost some consumers more than their mortgage.
Research conducted by First Utility reveals that the UK dual-fuel bills have increased by about 8.5% per year for the past five consecutive years and now average about £1,420 for the regular consumer.
If they were to keep rising by 8.5% every year then by the year 2025 they would cost the average consumer about £3,700 every year which is higher than what mortgage repayments are costing homeowners in Liverpool and Stoke-on-Trent. By May of 2030 energy bills that increase at this rate would cost almost £5,000 which would make them more expensive than mortgages held in Birmingham and Norwich.
McCaig explained that First Utility views energy costs differently because it wants to convince consumers to simply use less energy because right now they are not efficiently using it leading ot the higher costs.