Energy UK responds to Ofgem's price cap announcement
Responding to today’s announcement by Ofgem confirming details of the forthcoming default price cap, Energy UK’s chief executive Lawrence Slade said:
“The price cap will present a significant challenge for many of the 70+ suppliers in the retail market, who are already facing steeply rising costs - the vast majority of which are out of their direct control, at a time when the market is more competitive than ever. It is crucial that the cap doesn’t halt this growth of competition and choice and still enables energy companies to both invest and attract investment.
“Wholesale costs have risen by well in excess of 30% in the last year affecting energy companies large and small and, if this continues as current forecasts suggest, the cap will have to increase to reflect this. So we must continue to encourage more customers to engage and benefit from the large savings that can be made by switching which far exceed those delivered by the cap - and customers may benefit from fixed price deals which can protect against potential future rises.
“We must also look at ways to keep bills down on a lasting basis. Energy efficiency is by far the most effective way to do this over the long term, saving the typical customer hundreds of pounds a year through reducing their energy use. This is why Energy UK has long been calling for a national energy efficiency programme, which was recently supported by the National Infrastructure Commission.
“In the meantime the energy industry continues to drive through changes to ensure the market works for all consumers, from fast switching, improved customer service and additional protection for the most vulnerable.”