BOLTON: Energy bills could cost £50,000 over 25 years

New research by Admirals, a financial product and services company, has calculated that the average amount that households in the North West will spend on gas and electricity bills over a 25 year period will amount to £53,344 – higher than the UK average.

In April, the independent energy regulator Ofgem announced that the price of energy would be capped at 54 per cent.

Using government data, Admirals calculated a 54 per cent increase on average energy prices in the North West in 2021 to get the average for 2022 – a total of 2,133.97 per year.

Credit: Admirals

Roberto Rivero, Market Analyst at Admirals said: “The pandemic caused many businesses to temporarily close and forced citizens to remain at home. As planes stayed grounded and cars sat idly in driveways, demand for oil plunged and dragged prices down along with it.

“As the world reopened, demand recovered faster than supply could handle, with many oil producers struggling to increase their production.

“Although higher energy bills are concerning for everyone, energy prices are cyclical by nature, meaning that they won’t stay high forever.

“Put simply, when oil and gas prices are high, producers expand their output to take advantage of high prices. This increase leads to supply gradually catching up with demand and, eventually, overtaking it, which causes prices to fall again.”