Utilities customers may pay the price for energy upgrades

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While it would be hard to argue against the need for improvements to the UK's energy infrastructure, quite who should foot the bill for such an ambitious undertaking remains less clear.

Of course, the companies themselves have suggested that consumers should help to pay, given that they will be receiving a much-improved service in the future and, while the fact that the rising demand for electricity and gas from power-hungry households full of the latest gadgets is another reason why such a project is necessary.

However, such a suggestion has already sparked anger among consumer groups, most of which argue that, even when switching utilities suppliers for the best deal, UK consumers are still paying over-the-odds for their energy, particularly when compared to their European neighbours.

With some recent reports claiming that the typical UK household could be paying as much as £5,000 a year in energy bills alone by 2020, critics have claimed that a new tactic is needed, with the companies themselves to pay for the improvements needed to ensure that the country doesn't fall behind the rest of the continent when it comes to meeting consumer and business demand for power.

Audrey Gallacher, energy expert at Consumer Focus, explained: "Investment in the energy networks is needed, but companies don’t have a blank cheque and consumers cannot be expected to pick up the full tab - energy company shareholders need to pay their fair share of the investment bill.

"It is critical that energy companies quickly pass on wholesale price falls to consumers to help keep bills down and [ensure] that the energy efficiency of all households is improved."

One way in which consumers can at least partly shield themselves from high energy bills over the shorter-term future is to not only shop around and switch utilities suppliers, but also to embrace recent technological advances and switch to paying their bills online.

While energy firms have a duty to ensure that not all their best deals are kept for online customers only, with millions of the most vulnerable consumers, including the elderly and those on low-incomes, unable to afford their own internet connection, there seems to be little doubt that this is the direction in which utilities firms are heading.

Just as with most high street banks, the benefits of doing away with paper statements or call centre staff may be passed onto customers, while being online also makes switching suppliers incredibly easy, with the savvy consumer able to save a significant amount of money even while surfing the net during the ad-break of their favourite soap.

And, given that it seems more than likely that UK households may need to come up with at least some of the money for the improved energy infrastructure, Britons should be looking at every possible means of reducing their monthly bills before they get hit by massive rises.


 

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