EU targets to increase energy bills

A report by accountancy firm Ernst & Young suggests that energy bills will have to rise if the European Union's (EU) 2020 emissions targets are to be met.

A report by accountancy firm Ernst & Young suggests that energy bills will have to rise if the European Union's (EU) 2020 emissions targets are to be met.

An injection of around £100 billion will be needed if the EU's goals are to be achieved, Ernst & Young say, which would require annual energy bills to rise in the region of 20 per cent.

The EU is attempting to ensure carbon dioxide levels are reduced by 20 per cent by 2020 and that 20 per cent of member states' energy requirements are met through the use of renewables.

"Customers face a triple whammy - rising fuel and oil prices, the cost of climate change mitigation, and on top, the additional investment required to become more energy efficient, for example by insulating the home," said Simon Harvey of Ernst & Young.

However, the report also shows that consumers are contributing to their own downfall, as half of those polled said higher bills would not be enough of an incentive for them to cut their energy bills.

"There seems to be a worrying degree of apathy among consumers to reduce energy consumption," Mr Harvey concluded.

At present, only five per cent of Britain's energy is produced using renewables.