Energy 'set for a decade of rises' - 06/03/2012

The boss of British Gas has warned gas and electricity prices in the UK are likely to continue rising for at least the next ten years.

Managing director of the firm Phil Bentley said the cost of upgrading the nation's infrastructure and a range of green taxes will be the primary drivers of higher tariffs, the Daily Telegraph reports.

The publication said it is estimated a range of eco-friendly measures will add around £140 to the average domestic energy bill over the next eight years, while improvements to power networks are expected to require investment of between £80 billion and £100 billion.

While he did not give a projected figure for total bill rise, he said it may be several hundred pounds per year.

However, he added many people do not currently have the right priorities when it comes to making their usage more efficient or paying bills.

Mr Bentley said: "People will pay their Sky bill before their energy bill ... There has got to be a sensible debate about it."

He noted that as the basic unit price for gas and electricity is likely to rise, homeowners "are therefore going to have to be more diligent in saving energy".

The executive also warned of unintended consequences of drive to simplify the energy sector, which he said could result in the cheapest tariffs being withdrawn from the market.

Recently, Mr Bentley denied "profiteering" as he defended British Gas' profits for 2011, stating just 5p of every £1 of a person's bills is profit for the company.

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