Great British households face 13% summer energy bill rise
6 reported
According to a single-source report from The Guardian, ministers are under pressure to lower energy costs as households in Great Britain face the steepest rise in summer bills in four years. The quarterly cap on gas and electricity charges will increase by 13% from Wednesday, reaching the equivalent of £1,862 a year for an average household. This comes after data from industry regulator Ofgem showed consumer energy debt had reached record highs, with unpaid bills climbing by £240 million in the past three months to an all-time high of almost £4.8 billion. The article states that Andy Burnham, who appears set to become the next prime minister, will face immediate calls to tackle high energy bills upon taking power. Wholesale energy prices have surged due to the war in Iran, which has disrupted oil and gas shipments via the Strait of Hormuz for the past four months. Good Energy CEO Nigel Pocklington called for urgent reform to decouple electricity prices from gas, while a government spokesperson said they have taken £150 of costs off energy bills and are moving to break the influence of gas on electricity prices.
What’s reported
The quarterly cap on gas and electricity charges will rise by 13% from Wednesday to the equivalent of £1,862 a year for an average household.
Unpaid energy bills have climbed by £240 million in the past three months to an all-time high of almost £4.8 billion, according to Ofgem data.
Wholesale energy prices have surged due to the war in Iran, which has disrupted oil and gas shipments via the Strait of Hormuz for the past four months.
Good Energy has proposed moving the cost of supporting government policies from energy bills to general taxation and increasing warm home discount payments by £300 to £450 for 6 million vulnerable households, costing the Treasury about £10.1 billion.
Good Energy also joined calls to break the link between expensive gas power and the overall electricity market price by taking gas plants into a strategic reserve, which could save up to £60 a year for households within two years, according to analysis by Greenpeace and Stonehaven.
A government spokesperson stated they have taken £150 of costs off energy bills and extended the warm home discount to around 6 million households.
Key figures
Andy Burnham, appears set to become the next prime minister
Rachel Reeves, chancellor
James Mabey, policy analyst at National Energy Action
Nigel Pocklington, chief executive of Good Energy
Sources: The Guardian
