Responding to today’s price cap announcement by Ofgem, Energy UK’s chief executive Dhara Vyas said:
“A fall in the price cap is welcome news and will provide some respite for customers who have faced a succession of rises since the previous reduction last summer. However, this is still £500 more than at the start of 2022. Far too many households will still find it challenging to pay their energy bills at a time when customer debt is at record levels.
“So the requirement remains to press ahead with a debt relief scheme as well as bringing in targeted bill support for those customers most in need – while also looking at ways to cut bills right across the board* such as moving the policy costs off electricity that currently make it artificially expensive.
“Today’s announcement again underlines how energy bills are driven by the country’s dependence on gas and a wholesale price over which we have little control – and which has risen more often than fallen in recent times. Producing more of our own clean power is the right way to stabilise bills over the long term but in the meantime, the industry also wants to work with Government, Ofgem, and charities on ways to ease the burden on customers, in addition to the support already provided by suppliers.”
*For more details on Energy UK’s proposals to cut bills read: “How to Cut Bills: A crisis that can’t be ignored.” Energy UK has also published this briefing explaining in more detail the factors behind today’s price cap decision.