U-Switch say household fuel bills could hit £5k by 2020

Your home gas and electricity bills could reach as high as £4,733 a year by 2020, nearly four times higher than they are today, according to our latest research.

Our research is based on a number of factors including pricing trends, investment in infrastructure, the cost of cutting carbon and increasing energy efficiency. The cost of investment alone could add £548 a year onto energy bills.

Gas and electricity bills have more than doubled in the last 5 years, from an average of £580 in 2004 to £1,243 in 2009. If this trend continues, bills could go up to £4,185 by 2020 without even including the cost of any investment.

A huge £233.5 billion investment programme will be launched shortly to secure the country's longer-term energy supply and to allow all UK homes to have smart meters fitted.

But it is also likely that the energy market will continue to be volatile as the recession eases and global demand for energy rises again. The results of this increased demand for energy, coupled with North Sea oil reserves running out, will put pressure on wholesale energy prices resulting in ever increasing household bills.

Ann Robinson, Director of Consumer Policy at uSwitch, says: "We have a competitive energy market, and yet less than 5% of consumers are on the most competitive energy plans - most people are paying far more than they have to for the energy they use."

Ann added, "This has to change. My advice to consumers is to invest in making your home more energy efficient, reduce the amount of energy you use and make sure you are paying the lowest possible price for it. Big projects such as a new energy efficient boiler or home insulation can be expensive, but the savings you make through cutting the price of your energy could be re-invested into energy efficiency measures so that you reap even greater rewards in the future.