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Suppliers urge government intervention on energy bills amid crisis warnings
Overview
The energy suppliers' trade body, Energy UK, has called on the government to take immediate action to help households struggling with energy bills, warning that inaction will lead to a deeper crisis. Following a recent rise in October, forecasts predict a further 16% increase in domestic energy prices in January. Energy UK recommends targeted support, a debt relief scheme, and the removal of levies from electricity bills.
Key points
- Energy UK warns that inaction on rising energy bills will lead to a longer-term and deeper crisis.
- Forecasts predict a 16% rise in domestic energy prices in January for households on variable tariffs.
- Domestic gas prices rose at the start of October, adding an estimated £60 a year to typical bills.
- Consultancy Cornwall Insight forecasts typical annual bills could rise to £1,999 in January.
- Energy UK is calling for targeted support, a debt relief scheme, and shifting levies from electricity bills to taxation.
- Prime Minister Andy Burnham stated that the government is considering measures to ease the pressure on households.