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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