The reforms to the electricity market announced this week, which have been claimed to be able to offer people cheap energy, could result in bills rising for some consumers.
This is according to energy minister Charles Hendry, who told the Daily Telegraph it is inevitable there will be costs in order to secure the funding needed to improve the sector.
He said: "People shouldn't think this will bring about a drop in prices when we have £110 billion of investment needed to keep the lights on in this country."
While the publication noted some analysts have suggested prices could rise by up to £200 to finance the changes, the government has said the moves will help keep prices down in the long term.
Although bills will increase, they will still be four per cent lower over the next 20 years than they would be without the policies, it claimed.
Mr Hendry also added the changes will bring greater stability to the market and end fluctuating energy costs.
Introducing the draft bill earlier this week, energy secretary Ed Davey said the reforms will help keep bills down and reduce the nation's carbon emissions.
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