UK energy costs have been increasing since the last three years. It has risen by more than 37 percent since 2010. It was denoted by the Ofgem, the industry regulator that more than 1.4 million electricity accounts are still closing their arrears. 1.2 million gas accounts are in arrears and in the context of setting for winter temperatures these are going to be even higher. The Government is under pressure here as the energy prices is one of the major political issues being analyzed in the political space. Labour leader Ed Miliband has pledged that he will freeze prices and will hence stop their increase for the next 29 months that follows the elections. However even this freezing of prices would not stop the increase unless alternative options for fuels are tested and implemented on a large scale.
Moving forward, energy prices at present are projected to increase by more than 46 percent in 2020 and consumer group surveys indicate that more than 59 percent of the public might not trust energy companies (The Guardian, 2013). Also 84 percent of the surveyed population indicated that they were worried about the price increases. If this problem is not solved, this could lead to energy sector becoming more politicized in future and this might not be a good aspect when research needs will need to be met with public financing as people would not trust projects or initiatives of the energy sector.
The strengths of the UK energy strategy and sector is that they have identified the problem related to energy concerns and energy costs much earlier and are at present working on the viability of the various options. It is seen that some options could well be working before 2020 (British Pugwash, 2013).