FAMILIES FACE ENERGY CRISIS
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FAMILIES face annual energy bills of £2000 from April due to soaring gas prices, a utility company’s boss warned yesterday.
OVO chief executive Stephen Fitzpatrick warned that annual bills could be double what they were a year ago.
He blamed “an unprecedented increase in energy prices that affects all households”.
The warning came before energy chiefs and the industry watchdog held crisis talks with Business and Energy Secretary Kwasi Kwarteng.
Mr Fitzpatrick said that help is needed for the “poorest families in the UK, who already really struggle to afford to heat their homes in winter”.
He added: “With the energy prices that are going to double next year, it’s obvious that millions more will be pushed into that terrible position.
“From where they were in April 2021 to April 2022, it looks almost certain now that bills are going to reach £2000 per household.”
Prices are expected to rise by an average of £723 per year. It comes as
National Insurance is to go up from 12 per cent to 13.25 per cent, a rise of 1.25 percentage points that amounts to a 10 per cent increase.
Inflation, currently at 4.2 per cent, is also soaring.
The energy price cap limits the amount a supplier can charge per unit on their default tariffs and is currently set at £1277 for typical use.
However, due to rocketing wholesale prices, that is likely to soar when regulator Ofgem adjusts it in spring.
Dhara Vyas, policy chief at trade body Energy UK, said suppliers “expect the price cap to go up to reflect costs”. She added: “We are experiencing global high prices.”
Ruling out help from the industry, she added: “There’s only so much suppliers can do in the face of these increasing gas prices and other costs. It’s the sheer cost of buying gas which makes up the majority of the bill.”
Ms Vyas called on the Government to raise energy bill rebates.
Speaking after the summit between
Mr Kwarteng and industry leaders, a Government spokeswoman confirmed: “There was discussion of the issues facing the sector and an agreement for meetings to continue over the coming days and weeks to ensure that consumers are protected.”
But Labour accused the Tories of failing to act. Alan Whitehead, the Shadow Energy Minister, said: “The Government is sitting on its hands while working families are being hit by a cost-of-living crisis which has seen their energy bills soar, food costs increase and weekly budgets stretched.
“Labour has been calling on the Government to help out hard-pressed people by immediately removing VAT on household heating bills over the winter months. We also need a sustainable and ambitious approach to energy.
“That’s why Labour would also ramp up ambition with our plan to retrofit 19 million homes and make it a national mission to insulate homes to reduce energy bills.”
With prices that are going to double, millions more will be in a terrible position STEPHEN FITZPATRICK CHIEF EXECUTIVE OF ENERGY FIRM OVO