Energy regulator Ofgem is warning consumers that they should prepare for higher energy bills, due to the UK becoming more reliant on energy imports.
Ofgem Chief Executive Alistair Buchanan has suggested that power stations closures could hit capacity by as much as 10% in April alone. The shortfall in supply will need to be met by increasing gas imports which will prove costly.
The longer term solutions to the capacity crisis, such as new nuclear power stations, have yet to be given the final go-ahead by the government causing a worrying situation for the next three to five years. Mr Buchanan stated, "We're going to have to go shopping in world markets at a time when they will be very tight (on supplies) themselves."
"There isn't a single person or people to blame. In my view it was a single event - the financial crisis. Before the financial crisis the government had backed a a visionary approach to energy on wind, water and nuclear... then came the financial tsunami," Mr Buchanan continued.
Consumers are not powerless against the price increases, however, and are urged to regularly review their energy supplier and tariff. With many suppliers offering discounted tariffs and competitive fixed price deals households across the country can still save on their energy even as prices increase.
to compare energy suppliers now and beat the price rises