Rudd: Leaving the EU could push up bills
Energy bills could rise by more than £500 million by the 2020s if Britain left the EU on 23rd June, according to Amber Rudd, the UK’s energy secretary.
In an upcoming speech in Kent, Ms Rudd will claim that staying in the EU has kept household energy bills down, providing access to cheap electricity from the continent, along with facilitating billions of pounds of investment in the UK's energy network and supply chain.
In her speech, she will argue that the Britain vote to leave the European Union would result in a massive electric shock to the UK due to skyrocketing energy costs.
If Ms Rudd’s claims are correct, it would mean energy bills would rise by more than £20 per household in the UK.
Ms Rudd has based her claim on a report from National Grid consultants Vivid Economics. While the National Grid does not take a political view on leaving the EU themselves, the report states that ‘the impact on the UK energy system is very likely to be negative’.
National Grid expressed they were not giving an opinion about the UK's future in the EU but wanted to inform the debate by providing evidence about different settings.
Supporters of leaving the EU have said the claims by the UK Energy Secretary that total household bills could rise by as much as £1.5m a day are "absurd".
Those who are campaigning to leave the EU have said the UK did not depend on the EU or Russia for supplies, and EU membership has actually pushed cost ups.
With only three months until the referendum on the UK’s EU membership, both oppositions are questioning what leaving the EU means for UK employment, growth domestic security and national sovereignty.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Ofgem introduces new proposals for consumer market
Ofgem, the energy industry regulator, has put forward a number of proposals which could revolutionise the UK utility sector and further strengthen the hand of UK consumers. Currently energy firms have up to 65 days in which to notify customers that they have increased their prices while consumers have just 20 days to switch suppliers to avoid these increases. However, the new proposals would turn...Read More
Will UK consumers benefit from an energy price war?
Yesterday's news that British Gas will immediately reduce gas prices by 7% across the board was well received and could save UK consumers up to £55 year. While we have yet to see any response from the likes of E.ON and RWE npower it is almost certain they will respond with similar cuts to give them the best chance of retaining their customer base. However, will UK consumers really benefit from th...Read More
UK Consumers Set To Be Hit By Crippling Inflation
It seems as though the prospect of UK inflation hitting over 4% in the next few months is a real reality with news that the current rate has increased to 3.3%, well above the governments 2% target. This really is bad news for the UK consumer with living costs set to spiral yet higher over the coming 12 months. If the price of oil also continues to rise then we could see the problem magnified, ca...Read More
Tesco announces record profits of £3 billion
Today saw Tesco announce record profits of £3 billion and sales which have topped £1 billion a week. This is a remarkable achievement for a company which while one of the leaders in the sector is heavily dependent upon the state and strength of the UK economy. Tesco seems to stay one step ahead of the competition and one step ahead of the economic cycle having shifted the emphasis from the luxur...Read More
Have you considered a pay-as-you-go mobile?
While mobile phones have become more of a necessity than a luxury for many people in the UK, do you know how much you spend on your contract at the moment?
The vast majority of the UK public have moved or are considering moving to contract phones which often offer attractive deals but lock you in for varying amounts of time. It is very easy to use your contract mobile phone when per...