Statement in response to Ofgem’s energy price cap rise
16 August 2022
The latest hike on the energy price cap signals a crisis facing the UK on a scale we are simply not prepared for. We are heading into a catastrophic winter. This is no longer just about energy bills, but a spiral of immeasurable social, financial and health impacts that will impoverish millions of households across the country – especially those who can already least afford it.
As a first priority, we call for the government to immediately deliver meaningful, upfront financial support in time for the coming winter. This should be targeted at those who need it most, with the costs spread on progressive general taxation, rather than regressively diverted to future bills.
We must then address the underlying causes of the energy crisis. This means ending our reliance on expensive fossil fuels by:
- Massively uplifting the deployment of energy efficiency measures – a national programme of home improvements would help to reduce energy demand, improve health and living conditions, and in turn reduce our reliance on international gas.
- Seizing the opportunity of cheap, clean, homegrown energy – accelerating the deployment of renewable and low carbon energy sources would help secure a homegrown energy supply and insulate us from international shocks like this in the future.
- Ensuring the benefits of cheap renewable energy pass through to consumers – with new renewable projects now offering prices four times cheaper than fossil fuels, a new deal should be struck between renewable generators and consumers to ensure that these cost savings are felt as reductions on bills, not retained as super-profits by generators.
The scale of the crisis is enormous, but we have the solutions to avert some of the worst impacts this winter and protect ourselves going forward. We have to be bold, and we must act now.