Ofgem price cap rise shows UK far too exposed to volatile global fossil fuel prices

Chaitanya Kumar, head of economy, environment and green transition at NEF, said:

“This latest price cap rise shows that Britain’s energy market remains far too exposed to volatile global fossil fuel prices. A race to energy independence, built on homegrown renewables, is the only long-term solution to this rollercoaster of energy prices.

“While households struggle, oil and gas giants continue to rake in billions in excess profits. A stronger, permanent windfall tax on these companies could fund real, long-term protection for households, including a universal social tariff and energy debt relief.

“The government’s expansion of the warm homes discount will help millions more households. But one-off discounts aren’t enough when energy bills remain unaffordable. Permanently capping energy bills for those that need it — a National Energy Guarantee — would immediately protect families in distress and also reduce energy demand.

“And in the long term, the UK needs a bigger, faster programme of investment in home insulation and renewable energy. Every delay in delivering cheap, homegrown energy means higher bills for all of us. A properly funded plan could end our reliance on fossil fuels and drive bills down permanently.”

Notes

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