According to research by Consumer Futures, households heated by electricity will be the hardest hit by the government’s energy policy.
There are 11% of homes heated by electricity, three quarters of which will get no help with their bills and have an average bill rise of £282 in 2020.
Consumer Futures has called for energy efficiency measures to target the over 65’s and those in purpose built flats, which amounts to around 1.7 million homes.
“Energy policies should provide benefits to many consumers” said Adam Scorer director of policy at the watchdog, ” but as they are rolled out they will also create clear winners and losers. Some of those losers will be hit hard, and will not be in a position to absorb some significant bill shocks.”
The research suggests that The Department of Energy and Climate Change (Decc) have overplayed the positive impact the policies will have on prices.
The average household will be £31 better off if EU energy efficiency standards for appliances deliver the savings expected by government.The Decc have a figure of £166, but that is taking into account policies that were introduced in 2002.
If the products don’t have the desired effect, Consumer Futures said that bills could increase by £93 compared to no policy.
Scorer said: “There is a real danger that heroic assumptions about the benefits of product policy could perform the function of an energy policy comfort blanket, providing an illusory sense of security and cost saving. Consumers cannot afford such over-generous policy assumptions.”