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The REA responds to Ofgem’s announcement of
the “devastating” energy
price cap rise;
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The energy price cap will increase by more than 80% to
£3,549 from 1st October;
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As well as calling for immediate front-line support
from Government, the REA stresses the need for medium and
long-term solutions to this crisis, such as delivering the
renewable energy transition.
The Association for Renewable Energy and Clean Technology (REA)
responds to Ofgem’s announcement today that theenergy price cap
will increase by more than 80% to £3,549 from 1st October, saying
that this devastating hike will come as a hammer blow for many
households, also leaving real uncertainty for businesses that are
weighing up the economic impact over the coming months.
A combination of short, medium, and long-term solutions is
crucial to mitigate this crisis, says the REA. Immediate
intervention is required, such as expansion of the Energy Bills
Support Scheme, but the long-term delivery of renewable
generation, now by far the cheapest form of power generation
accompanied by making homes and buildings more energy efficient
are also absolutely necessary.
Part of this solution will come from sustained focus on the
current government Review of Electricity Market Arrangements
(REMA), which has the longer-term potential to provide market
reforms that will ensure consumers can benefit from low cost and
secure renewable generation, helping to stabilise the energy
market and lower bills for years to come.
The REA now calls upon Government to come forward immediately
with a comprehensive plan, saying that no more time can be lost.
Mark Sommerfeld, Head of Power and Flexibility at the
Association for Renewable Energy and Clean Technology (REA),
said:
“This devastating hike in the energy price cap will come as a
hammer blow for many households, and leaves real uncertainty for
businesses that are weighing up the economic impact over the
coming months.
“It is clear that significant intervention is needed, with
the expansion of support through the Energy Bills Support Scheme,
one such example. A high-level expert panel must also be urgently
convened to consider further options around the energy
crisis.
“However, Government must not lose sight of the medium and
long-term solutions to this crisis either. While up front support
is imperative, so too is the necessity of delivering renewable
generation, now by far the cheapest form of power generation,
accompanied by making homes and buildings more energy
efficient.
“The Government must also offer sustained focus on the
current government review of the electricity market arrangements,
which has the longer-term potential to provide market reforms
that will ensure consumers can benefit from low cost and secure
renewable generation, helping to stabilise the energy market and
lower bills for years to come.
“We can ill-afford any more lost time - the Government must
come forward with a comprehensive plan, fast.”
