Electricity prices could increase by a fifth, according to evidence given to MPs by energy company bosses.
The “big six” energy suppliers were questioned by the House of Commons Energy Security and Net Zero Select Committee about energy bills.
A spokesperson for the End Fuel Poverty Coalition, commented:
“It’s highly concerning that energy bosses have painted such a bleak outlook for energy bills in coming years.
“With over 12 million households struggling with the cost of heating and energy debt at record levels, it’s clear that electricity pricing must be fairer, standing charges reduced and that the Government must look at how any vital investment in energy infrastructure is paid for.
“Ministers and the regulator should set out a clear long-term pathway so that the public knows what the fixed costs of the grid are likely to be, what schemes will be available to help improve energy efficiency and what financial support will be in place to help those in fuel poverty.
“The nation’s energy system is going through huge changes to improve energy security, meet demand* and bring down the cost of generating energy. But as this change happens, the Government mustn’t forget about households struggling through a fifth winter of high bills.”
The End Fuel Poverty Coalition’s written evidence to MPs on the Committee Inquiry [pdf] highlighted how the energy system is unfair by design — with standing charges, supplier failures and gas-linked pricing hitting low-income households hardest.
The evidence recommended:
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Fairer pricing that reflects cheap renewables
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A fully funded £13.2bn Warm Homes Plan
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Social tariffs & lower standing charges
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A regulator that prioritises bringing down energy bills
*Even the lowest prediction by the National Energy System Operator suggests that electricity demand will increase by 93% between now and 2050.