UK consumers to pay twice as much for electricity compared to Germans, report claims

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Swiss-based financial services company Credit Suisse has claimed that the price of wholesale electricity in the United Kingdom could be almost double that in Germany within the next three years.

Any rise in electricity prices on the wholesale market would obviously impact millions of UK homeowners.

Whilst the gap between UK and German wholesale energy prices currently stands at 25 per cent, it's expected to increase to 85 per cent by the time the winter of 2016/17 arrives.

The rise has been attributed to the introduction of the government's new tax on power generation that results in the emission of carbon dioxide. It's also highlighted  the country's lack of infrastructure to bring in power from mainland Europe as an issue.

With this tax carbon dioxide emitting power generators currently pay around £4.94 for each tonne they emit, in addition to a carbon charge previously introduced by the EU's Emissions Trading System.

The German wholesale market, on the other hand, has benefited from a green energy boom.

Germany has also seen a considerable subsidisation in its renewable energy sector too - though this has been reduced, with qualms raised over the management and profitability of green energy.

Commenting on the findings of its report, a Credit Suisse analyst, stated: "Our analysis suggests these differentials will continue for the next seven to 10 years."

In recent times the government has also introduced the Green Deal - an initiative designed to allow homeowners to make energy saving home improvements to their homes, without having to pay the costs upfront. With this homeowners can get a new gas boiler, cavity wall insulation and double glazing installed.

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