Demand for cheap electricity could double over the next four decades as the UK's population increases, meaning reforms to the energy market are necessary now.
This is the statement made by energy secretary Chris Huhne, who said his range of reforms will yield "the biggest transformation of the market since privatisation".
Speaking to the House of Commons, the minister said: "Increases in wholesale costs and the carbon price are likely to lead to higher bills in the future, even without factoring in the huge investment needed in new infrastructure.
"So it is vital that we put in place market arrangements that deliver this investment as cost-effectively as possible," he noted.
"The current electricity market is simply not up to the job. It cannot deliver investment at the scale and the pace we need."
Meanwhile, the government has also set out its fourth carbon budget for the period 2023-2027.
If you want to find out more about how to compare energy suppliers and save up to £453 in minutes, click here.
Share this story with your friends:-
Save up to £300 on your gas & electricity bills at energyhelpline.com
Compare prices from all energy suppliers to find your best deal