Responses to Ofgem Price Cap announcement

Emily Seymour, Which? Energy Editor, said: 

"Households across the country will understandably be worried to hear that the energy price cap will rise by 10 per cent from October - when temperatures drop and we all use more energy. 

"Consumers could try shopping around for energy deals and looking out for any that might be cheaper than the October price cap when it comes into effect. Unfortunately, there's no 'one size fits all' approach when it comes to fixing an energy deal as it will all depend on your individual circumstances. You should compare what your monthly payments would be on a fixed deal with what you'd expect them to be if you remain with the price-capped variable tariff to see what the best option is for you. 

"As a rule of thumb, we'd recommend looking for deals around the price of the current price cap, not longer than 12 months and without significant exit fees. Consumers can use switching services, like Which? Switch Energy, to keep an eye on the best fixed deals available and compare deals to see what's cheapest for them."

Responding to news that energy regulator Ofgem has raised the price cap by 9.5 per cent just before the onset of winter, Green Party co-leader Carla Denyer said: 

“Consumers are paying high prices for a crisis not of their making. This will be deeply worrying news for all those people already struggling to pay their bills. 

“The government has said that establishing GB Energy will reduce bills in the future, which would be welcome. However, that aim will only be achieved if the government invests in improving the energy efficiency of homes too. 

"We need a nationwide programme of government-backed, council-delivered home insulation starting immediately to help people keep their bills down for good.  

"We also now need the government to maintain the winter fuel payments for all pensioners and end means testing so that they know they can afford to keep warm. 

“We could reduce bills for the long term and help reduce greenhouse gas emissions by building new homes that are easier and cheaper to heat and boosting insulation in existing homes. Insulating people's homes means they can stay warm while using less energy, save money and produce fewer harmful carbon emissions.” 

Labour Party

Energy Price Cap rise is the latest in series of toxic Tory messes left to Labour to clear up

Every family and business Britain is continuing to pay the price of 14 years of Conservative failure on energy security. This price rise is the latest in a series of toxic legacy issues left to Labour to clear up after the chaos and economic irresponsibility of the Conservatives.

The increase in the energy price cap is a direct result of the failed energy policy this Government  inherited from the Conservatives. 

• The last Government left Britain underprepared because they failed to invest in clean energy at speed and scale. The previous government blamed global events, but the truth is that they left Britain underprepared, by failing to invest in the clean energy and energy efficiency that our country needs. 

The Conservative Government left Britain underprepared because they failed to invest in clean energy at speed and scale. 

• In an increasingly unstable world, spiking fossil fuel prices have meant higher bills for British families. As Putin's war in Ukraine ramped up, so did the price of gas. The results have been devastating for the finances of ordinary families. 
• As long as Britain remains exposed, as the OBR and others have warned, we risk further energy crises in future and once again working people will be hit hardest. Until we change this, our country will be stuck on a rollercoaster of unstable markets driven by dictators and petrostates.

Only this government's growth-focussed mission for clean, homegrown power can give our country the energy independence we need, create good jobs and give families and businesses the energy security they deserve. 

• Labour's plans will help the British people to save money off their bills because we will replace an energy system dependent on expensive fossil fuels with one run on cheaper, homegrown clean power.
• To realise Labour's mission to grow the economy and create good jobs all across the country, Labour will establish a National Wealth Fund. Capitalised with £7.3 billion over the course of the next Parliament, the National Wealth Fund will have a remit to support Labour's growth and clean energy missions. Investments will be allocated in the manufacturing of green hydrogen, carbon capture, the steel industry and more.

The Government is wasting no time in taking action to deliver on our clean power mission. 

• We have hit the ground running- in our first few weeks, we have set up Great British Energy, lifted the onshore wind ban, consented unprecedented amounts of solar power and have set the largest ever budget for our renewables auction. The Government's Warm Homes Plan will upgrade millions of homes this Parliament by investing in low carbon heating and insulation, while also ensuring private rented homes meet higher energy efficiency standards. This bold and ambitious plan will help transform homes across the country by cutting energy bills, reducing fuel poverty and ensuring buildings are fit for a net zero future.
• Our clean power mission will drive growth in every region and nation of the country, whilst creating thousands of new high-skilled, well-paid jobs in our coastal communities and industrial heartlands.

A Labour spokesperson, commenting on the dire inheritance left by the last Conservative government, said:

“This price increase is the harvest of 14 years of Tory neglect and failure to prepare and invest in British-owned clean energy. While they were quick to blame everybody but themselves during the energy crisis, the Tories dragged their feet on energy security and took a hammer to the renewable energy sector, with working families still paying the price.

“The Labour Government has hit the ground running to tackle the root causes of high energy prices. In under fifty days we have set up Great British Energy to cut bills for good, lifted the onshore wind ban, consented unprecedented amounts of solar power and have set the largest ever budget for our renewables auction.

“Labour's bold energy plans will warm homes across the country, cut energy bills for good and create thousands of high-skilled, well paid jobs as we move towards cheaper, homegrown clean power.”

Ends

Notes:

• Every family is paying the price of 14 years of Tory failure on energy bills. British families saw energy bills rise more than twice as fast as the European average at the peak of the energy crisis. Electricity prices have risen in real terms in all but two years since the Conservatives came to power in 2010.https://researchbriefings.files.parliament.uk/documents/CBP-9491/CBP-9491.pdf
• The Tories left Britain dangerously exposed to energy markets controlled by dictators like Putin by blocking investment in clean energy and selling off our gas storage. The average family has paid more than £1,880 more in energy bills over the last two years as a result.  

• Rather than learn the lessons, the Tories wanted Britain to double down on our insecurity and, as the OBR warns, risk more energy crises in future.

This Government has hit the ground running. In just 7 weeks, we have:

• The Government is wasting no time in taking action to deliver on our clean power mission. In our first few weeks, we have:
• • Published the Great British Energy Bill and announced the first major partnership for Great British Energy, with The Crown Estate
  • Lifted the nine-year onshore wind ban which had effectively blocked onshore wind developments since 2015
  • Consented 1.3GW of solar power projects, which will power the equivalent of almost 400,000 homes
  • Re-launched the solar taskforce and launched the onshore wind taskforce.
  • Established a new National Wealth Fund with the Chancellor to drive green investment into communities across the UK
  • Set up a new Mission Control at the heart of government to deliver clean power by 2030, headed up by former Climate Change Committee chief executive Chris Stark 
  • Announced funding to deliver homegrown clean energy projects through the flagship Contracts for Difference Scheme 
  • Appointed Juergen Maier as Start-up Chair of Great British Energy
  • Put international climate leadership back at the heart of Government, with the Secretary of State leading on climate negotiations
    
    
• Great British Energy will be at the heart of the Government's clean power mission. The company will be owned by the British people, for the British people, backed with £8.3 billion of new money over this Parliament to own and invest in clean power projects in regions across the UK.
  
  
• Great British Energy's mission will be to drive clean energy deployment to create jobs, boost energy independence, and ensure British taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy.
  
  
• The major partnership announced with The Crown Estate  will bring together two national institutions for the benefit of the British people, and has the potential to leverage up to £60 billion of private investment into the UK's drive for energy independence.

• It is the government's firm belief that each of these challenges points to the same, single solution, and that is a sprint for clean energy.

• By producing the clean energy we need at home, we can boost our energy independence, and ensure foreign dictators no longer have control over us.

• By building a diverse, clean energy system, we can make the most of the abundant natural resources in this country to protect consumers from future price shocks.

• By investing in a huge wave of clean energy projects, we will capitalise on the growth opportunities our Net Zero transition provides for green industries, building new supply chains and infrastructure and creating hundreds of thousands of skilled jobs. This will spread growth and prosperity to every region of the UK.

• Finally, by achieving clean energy at home, we can provide international leadership to inspire global climate action and protect the planet for future generations.

• It is for all these reasons that we have made it our mission to deliver fully decarbonised power by 2030 and accelerate to net zero.

• Indeed, making the UK a clean energy superpower is one of the Prime Minister's five main missions for government.