05-06-2008
Supplier issues warning over higher energy prices
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
A leading UK energy supplier has issued a warning to consumers that they must prepare themselves for the possibility of structurally higher prices in future.
E.On claims that major investment is needed to reduce greenhouse gas emissions across the energy sector and this will translate into higher domestic energy bills.
According to E.On chief executive Paul Golby, meeting demand for new wind farms and nuclear power stations will require massive investment, totalling as much as £100 billion by 2020, the Financial Times reports.
"We have gone from a world where energy is plentiful and cheap to one where it is scarce and expensive, and I don’t see what will change to flip that back again," he declared at the launch of the E.On energy manifesto.
Ambitious European Union and UK targets for renewable energy generation will require the building of new facilities to replace old plants that are closing and E.On estimates that offshore wind power generation is more expensive than using coal or gas.
The company states that around 70,000 megawatts of new capacity may be built in Britain between now and 2020, with coal and gas-fired stations needed to support wind power, which is not as steadily reliable a source.
Owned by German energy giant E.On, E.On UK is one of the leading British energy firms with an extensive distribution network and has invested in low carbon research to help the country meet its environmental targets over the coming years.