Are your energy prices set to rise over the next 18 months?

Just imagine Christmas Morning in 2016 no doubt there will be shouts of festive joy whilst the Turkey is in the oven. Keep that thought in your mind and imagine the amount of energy the whole of the country is using on this special morning, it shouldn’t be a problem right? After all you do directly and indirectly pay some of the highest energy prices in the world for a reason and one of those is to maintain the system avoiding times of blackouts e.g. Well think again the UK risks being plunged into darkness for periods of time during the coldest winter months when energy demand hits its peak at 56GW, something which could realistically happen on a Christmas morning whilst the National Grid struggles to cope with the demand caused by 25 million Turkeys on the stove. 

Surprising, to many of us, the above scenario could become a realistic reality in the foreseeable future. A recent study by US Investment Bank Jefferies International has recently stated that it expects the UK’s capacity of dispatchable energy in the national grid to be 53GW a massive 3GW in short supply to demand. This comes after recent announcements that coal fired power plants, such as the Eggbourogh Power Plant in North Yorkshire, are closing or planning to close after a lack of government support and the shift towards sourcing our energy from renewable s, at an alarming rate.

It was only in spring that the SSE Ferrybridge Coal plant in West Yorkshire announced that it would also close in March 2015 as SSE deemed that the taxes that will be imposed on Fossil Fuel burning power plants in 2016, for which they would need to pay to keep the plant running, makes the continuation of activity in West Yorkshire unsustainable in the long run.

Whilst the outstanding question remains about how will the UK meet the suggested power demands needed to keep the lights on during the Winter of 2016, the conclusion is that unless we can find the excess energy needed to meet the market demand the risks of disruptions to our energy services during the course of the next two years remain relatively high as solutions such as building extra resources of energy such as wind farms take up time and resources, something of which the UK Government has in recent months been reluctant to do with the scrapping of several plans to build offshore sites in the UK.

The feeling is that unless we can come together to sustainably phase out Fossil Fuel burning Power Plants at an acceptable rate or reduce our peak energy demands in winter our energy bills are set to rise again and either way we look at the situation it will be the bill payer picking up the cost of rising energy bills. To put it in the Jefferies Banks words in economic terms. When demand exceeds supply prices rise. Our advice is to you would be to seriously look at fixing your energy prices going into 2016 to avoid such price hikes .

You can compare your current Energy Prices here to help protect you against any future fluctuations in the energy market in the future.