Rising energy prices next winter will be “horrific” and could plunge 30 to 40% of British consumers into energy poverty, energy companies warned today, urging Downing Street to take action.
“During the summer, consumption (of British households) will decline, so managing bills will be easier,” but with further increases expected in October for individuals, the situation “will become horrible, really horrible”. The alarm bell rang for Keith Anderson, CEO of ScottishPower, before a parliamentary committee.
That could mean “up to 30 to 40% of people in energy insecurity”, an “unprecedented increase, which requires the government to take unprecedented action”, added Michael Lewis, CEO of E.ON. another British energy manager.
Members of the British Parliament’s energy committee heard this morning several executives of energy companies, who urged the government to do more to address the global rise in prices, exacerbated by the war in Ukraine.
The UK recorded a massive 54% rise in the energy ceiling for households in April and could rise dramatically again in October when revised.
“In recent months, we’ve seen a 40% increase in calls from customers worried about their debt-related energy bills,” Simon Rossi, EDF’s UK director, told the committee. “This is only the first symptom” of the effects of the crisis on households, according to him.
Finance Minister Risi Sunak announced a series of fiscal measures last month, particularly in the fuel sector, following a 9 9bn package announced in February to boost purchasing power. But the aid plan has been widely criticized, with the accusation being too inadequate.
These measures “will help, but will not be enough to mitigate the impact of price increases”, according to Michael Lewis, who says he supports, over time, the introduction of a social energy tariff and called for immediate action and take measures, including reductions in energy taxes or extension of heating aid.
The British government recently released a document outlining a new strategy for energy security by boosting nuclear, wind, solar and fossil fuel energy in the North Sea.
“This is a document that, in the medium and long term, puts the country in the right direction,” but this new strategy “does not address short-term needs,” said Keith Anderson of ScottishPower.
Source: AMPE
Source: Capital
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