Energy bills `could rise due to carbon floor price`

Household energy bills could increase as a result of the `carbon floor price` tax announced at this year`s Budget, it has been claimed.

The carbon floor price is the minimum amount of tax that users of fossil fuels will pay per ton of carbon dioxide produced. From 2013, this will be set at £16 per ton, but it will gradually increase, meaning that by 2020 the floor will be £30 per ton.

WSP Environment and Energy, an `environmental and sustainability consultancy`, said that this additional cost for energy suppliers could be passed onto consumers - and if it is, the floor price could increase electricity bills by 9% and gas bills by 6%.

An expert at debt management company Gregory Pennington commented: "This is potentially bad news for many billpayers, especially those whose finances have already been squeezed by the events of recent years. Any possibility of even higher energy bills could be extremely worrying for anyone in that situation.

"It`s another reminder for households to do what they can to get their finances into good shape. Good preparation now - in the form of strict budgeting or putting money into savings, perhaps - could save a lot of worry in the future."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.