Mark Powell, UK head of energy consulting, KPMG, comments on the OPEC discussion on increasing supplies to dampen prices in the face of rising consumer utilities bills:
"Today's electricity price rises are driven by commodity costs but these will pale into insignificance as the cost of funding decarbonisation starts to hit.
"While new nuclear represents the cheapest form of low carbon energy generation at an estimated cost of £55-85/ MW - compared with £120-180/ MW for offshore wind - any post-Fukushima delays could also hike consumers' electricity bills.
"With ambitious low carbon targets - which include renewable energy generation such as solar, construction of the new nuclear fleet and a new energy infrastructure - needing to be funded, the consumer is invariably going to end up paying one way or another.
"The utility companies are facing increasing pressure on all sides, which leaves them little option but to increase fuel prices from a historically low base."
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
