Responding to this morning’s announcement from Ofgem on the new price cap to come into effect from October, Energy UK’s chief executive Emma Pinchbeck said:
“An increase ahead of winter will be worrying news for many customers and an unwelcome reminder of how global factors can push up the price of fossil fuels, increase the cost of energy and ultimately hit customer bills.
“With energy debt at record levels, it is clear how many customers are struggling even before this increase. Suppliers will continue to do all they can by offering a range of financial and other support and we would always encourage customers in difficulty to get in touch and see what help is available.
“However there is only so much they can do when millions of customers struggle to afford energy at the cost it takes to supply it. It increases the urgency of looking at how we can increase and better target financial support so it reaches those in most need this winter – as well as long term change to reduce our dependence on volatile international markets.
“We’ve put forward proposals which could – by reallocating policy costs – enable the existing Warm Home Discount to be doubled without increasing bills, as well as helping make new heating technologies more affordable for households looking to reduce their reliance on gas. So we are urging the Government to work with suppliers and consumer groups on ideas like this which could immediately help millions of households.
“Keeping bills down for everyone over the coming years and decades means reducing our dependency on gas and its volatile pricing, increasing the production and distribution of clean homegrown power and making more of our homes and businesses energy efficient.
“Standing charges have increased significantly over the last couple of years and so it’s right that Ofgem is looking at how to address these growing concerns. Suppliers are keen to work with Ofgem to ensure that the costs they incur are spread fairly across customer bills but any change needs to be introduced carefully – so that cutting costs for some doesn’t then lead to big bill increases for other vulnerable customers. It’s also true that the price cap gives suppliers limited scope to reduce standing charges.”