Energy Price Cap Decrease: A Missed Opportunity for Greater Savings

Energy bills are set to decrease by 7% on 1st July as the new Ofgem price cap takes effect. However, campaigners have stated that this figure could be £500 lower if measures had been implemented to fix Britain’s energy system.

The End Fuel Poverty Coalition’s analysis indicates that insulating homes, reducing standing charges, and removing VAT from energy bills would have significantly reduced household costs.

With the Ofgem price cap anticipated to rise by about 10% in October 2024, the next government is urged to adopt proposals to lower energy costs from day one.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said that more efforts on insulating homes, lowering standing charges, transitioning to cheaper energy sources, and supporting vulnerable households would have resulted in an Ofgem price cap of £1,071.98, which is £496.62 less than the average household will be paying.

Public support for a social tariff, which offers cheaper energy to vulnerable households, stands at 57%, according to a survey. Campaigners also urge the introduction of a nationwide energy debt matching programme funded by the £1.3 billion customers are paying through bills for energy debt costs this year.

Fiona Waters, spokesperson for Warm This Winter, stated that energy bills will rise again in October, and the high prices have had a significant impact. Ms Waters emphasised the need for reforms, including new renewable energy schemes that can generate electricity more cheaply than fossil fuels.

Juliet Phillips, UK energy lead at E3G, said: “The British public backs common-sense proposals to upgrade our homes and ensure that everyone can afford to heat their home. We urge all political leaders to make this a national priority and take action before energy bills are set to soar again this winter. Without action, households are set for another £200 price rise in the Autumn, as the UK remains dependent on expensive foreign gas.

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