Increase in energy bills 'could leave Brits out of pocket'

UK energy bills could increase by 60 per cent by 2020 due to greater demand, according to a report by Ofgem.

The energy regulator warned of a number of different scenarios in assessing the energy security risks over the next ten to 15 years, including the possibility that there could be a 22 per cent increase in consumer bills by 2020 due to increased dependence on imported gas for new gas-fired power stations.

As people struggle to cope with rising costs, they may be more likely to turn to high interest credit cards to pay their household expenses.

Ofgem chief executive Alistair Buchanan said: "These are big challenges. Consumers are already enduring high energy prices."

He added that early action on energy supply, demand and pricing could avoid "hasty and expensive measures" in the future.

According to research by uSwitch, bills could reach as high as £4,733 a year by 2020.