Keir Starmer’s ambition to slash energy bills by £300 by 2030 is under threat, with industry body Energy UK warning that “urgent action” is required. This comes as UK households face another energy price hike from April.
Bill Increases and Delayed Benefits
Energy UK’s research indicates that while the government’s 2030 clean energy plan promises lower bills in the future, the benefits won’t be immediate. They’ve also criticised the lack of a clear action plan to reduce household bills.
The average gas and electricity bill is set to rise by £111 annually, reaching £1,849, according to Ofgem. Despite a drop from the peak after Russia’s invasion of Ukraine, bills remain 34% higher than pre-crisis levels, with customer debt nearing a record £4 billion.
Energy UK’s Recommendations for Action
To ensure Starmer’s target is met, Energy UK proposes several key measures:
- Promote Flexible Energy Use: Encourage households to shift energy consumption to off-peak hours, utilizing periods of lower demand or excess renewable energy.
- Invest in Flexibility Equipment: Support households in acquiring batteries, heat pumps, and electric vehicles, enabling them to save up to £115 annually by using energy during non-peak times.
- Reduce Reliance on Imported Gas: Emphasize the need to transition away from volatile wholesale gas markets.
- Reform Policy Costs: Advocate for the removal of policy costs from electricity bills, shifting them to gas bills and supplementing them with general taxation. This could potentially reduce bills by £400 annually for homes with electric heating.
- Increase Public Investment: Call for greater government funding to support the clean energy transition and reduce bills.
Government Response and Ongoing Initiatives
The government has reiterated its commitment to making Britain a clean energy superpower, highlighting ongoing initiatives like grid connection reforms and the £1.8 billion Warm Homes Plan, which aims to provide energy-saving upgrades to 170,000 homes.
Industry Concerns and Ofgem Relations
Energy UK has also expressed concerns about Ofgem’s “unreasonable and unprofessional behaviour,” pointing to disagreements within the energy sector.
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