Fuel poverty to rise sharply Even if a proposed new definition of fuel poverty is used - one which takes into account households with lower than average incomes but higher than average fuel costs - Prof Hills said that the number of homes in fuel poverty will rise from 2.7 million to 2.9 million by 2016. Prof Hills said that there is "no sensible way of measuring fuel poverty which shows the problem will be eliminated on current trends by 2016." He said: "There is no doubt that fuel poverty is a serious national problem - increasing hardship, contributing to winter deaths and other health problems." The outlook is profoundly disappointing, with the scale of the problem heading to be nearly three times higher in 2016 - the date legislation set for its elimination - than in 2003. Typical household energy bills are expected to hit £1,250 a year by 2020, up from £1,060 in 2010. One of the key factors behind rising energy costs are DECC-imposed green taxes and levies, which are expected to add up to £200 to bills by 2020. Prof Hills report said that the green policies will only have a limited impact on cutting fuel poverty, and will only reduce the problem "by a tenth." One particular policy called the Energy Company Obligation (ECO), under which energy firms will help make homes greener but pass the cost on to consumers, was labeled as "regressive" as it will actually add to the cost of bills for the UK's poorest 2 million homes. The report said that ECO would "lead to further marginalization of some of the most deeply fuel poor houses in England." Ed Davey, the Energy Secretary, described fuel poverty as "serious." He said: "This Government remains committed to doing all it can to take fuel poverty and make sure that the help available reaches those who need it most." He said that Prof Hills" proposed new definition of fuel poverty is a more sensible and accurate measure of the problem.