Energy bills will remain significantly higher for at least the next six years.
That’s according to a new analysis by Cornwall Insight, which suggests this is due to the ageing of gas-fired power stations and delays in building new nuclear plants.
The cost paid to electricity generators to maintain a stable supply will be at least £51 per kilowatt annually until the end of the decade.
Currently, this rate is £18 per kilowatt.
The capacity market scheme pays subsidies to conventional power stations to stay open as a backup for renewable energy suppliers, securing most of the needed energy four years in advance.
A few days ago, the Chair of energy regulator Ofgem warned that British energy bills are unlikely to decrease significantly over the next decade.
