UK (Parliament Politics Magazine) – Cornwall Insight revealed that Britain’s energy bills will increase by £85, marking a 5% rise from April, due to surging wholesale gas prices.
As reported by The Guardian, analysis reports that millions of households will see an unexpected rise in their energy costs from April, following a drop in Europe’s gas storage levels.
What did Cornwall Insight predict about the rise in energy prices?
The latest forecast by an energy consultancy shows a 2.7% increase in annual bills, reaching an average of £1,785 from spring. The adjustment follows colder weather and a shortage of renewable energy, which have significantly impacted gas storage levels across Europe.
It predicts a slight drop in the price cap this summer, followed by another increase in October.
The recent surge in energy prices represents the third consecutive quarter of increasing prices for households, undermining the government’s election pledge to reduce energy bills by “up to £300 by 2030.”
What did Craig Lowrey from Cornwall Insight say about rising household energy bills?
Dr Craig Lowrey, principal consultant at Cornwall Insight, stated,
“Households have been hit hard over the past few months, and with bills set to rise for a third consecutive time, the pressure is not letting up.”
He stressed that Labour should focus on expanding domestic renewable energy sources like wind and solar farms in light of growing energy costs.
Who will confirm the energy price cap for April?
The energy regulator for Great Britain, Ofgem, will confirm the energy price cap for the three months starting 1 April on Tuesday, 25 February. In January, the authority raised the cap by 1.2%, setting it at a rate of £1,738.
Approximately 9 million households using variable tariffs linked to the price cap will experience an immediate rise in their costs, while those on fixed tariffs will see the change later.
The energy price cap limits the highest amount energy suppliers can charge per unit for households on standard variable tariffs, which applies to the majority of homes and is calculated as an annual bill for an average household. It was introduced in January 2019.
What did Adam Scorer say about the price cap rise?
The head of National Energy Action, Adam Scorer, warned that the third consecutive increase in the price cap would affect households “following three years of exceptionally high energy bills.”
He stated,
“It will feel like an interminable winter for so many, with energy a luxury they simply cannot afford. There is no getting used to this new normal for the people we try to help.”
What did Ed Miliband say in his warning to Ofgem about rising energy costs?
Energy secretary Ed Miliband has called on the energy regulator, Ofgem, to take stronger actions against increasing costs as projections reveal the average energy bill could rise by over £100 a year.
He has written an urgent letter to Ofgem, asking the regulators to accelerate their efforts to protect consumers from upcoming price hikes. In his letter to chief executive Jonathan Brearley, he pointed out measures Ofgem could adopt to tackle the “rollercoaster” of global gas markets.
Mr Miliban wrote in the letter,
“In recent months we have seen once again the dangers for our country of being exposed to fossil fuel markets controlled by petrostates and dictators,”
Adding Britain is
“highly exposed to these global gas markets.”
The energy secretary further stated that Ofgem should make efforts to tackle misleading and high bills and proposed bringing forward ideas to implement a zero-standing charge for customers.
How did Simon Francis highlight choosing the right energy tariff?
Simon Francis, head of the End Fuel Poverty Coalition, stated that it’s essential to pick the right energy tariff to lower bills, stressing the urgency of making the right decision.
He said,
“Consumers need to navigate a confusing array of energy tariffs. The key point to remember is to use your energy usage when comparing prices and not rely on industry averages, which may hide the true cost you will pay.”