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REA has urged the Government to take action on energy
bills after Ofgem predicts price cap will rise to
£2,800;
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Government intervention now a ‘moral and economic
imperative’ - REA say short-term relief is critical;
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Need for a ‘national effort’ to insulate thousands of
homes and install domestic renewables and clean tech before
winter.
The Association for Renewable Energy and Clean Technology (REA)
has urged the Government to take urgent action on energy bills,
saying that there is a ‘moral and economic imperative’ for
intervention.
The calls come after , Ofgem’s Chief Executive,
said the cap on household energy bills is to rise to about £2,800
in October. The increase in the cap would see the average bill
increase by more than £800, after the regulator increased it by
£693 in April to £1,971.
The REA have reiterated their calls for a package of measures
which will bring immediate relief to household bills, while also
highlighting the need to accelerate the wider energy transition
to remove volatile gas prices from bills permanently.
These include moving ‘green’ levies into general taxation,
suspending VAT on energy bills and expanding the eligibility and
increasing the value of the Warm Homes Discount.
In addition, extending the list of technologies included as
Energy Saving Materials, establishing an effective home
insulation scheme and delivering an ambitious domestic heat
decarbonisation policy, are other key asks.
Dr Nina Skorupska CBE, Chief Executive of the Association
for Renewable Energy and Clean Technology (REA), said:
“The situation is critical. Already we are seeing people
having to skip meals, turn off the heating or struggling to pay
for life-saving medical equipment - this devastating energy price
cap rise will see millions of households fall deeper into poverty
and push many more below the breadline.
“The Government has a moral and economic imperative to
intervene with a substantial package to relieve pressure on
energy bills. VAT on energy bills should be suspended and the
Warm Homes Discount must be expanded, both in terms of value and
eligibility. ‘Green’ levies also would be more appropriately
sourced from general taxation.
“In parallel, we need a national effort to ensure as many
households as possible can insulate their homes and increase the
installation of domestic renewables and clean technology before
the winter. A failure to do so will lead to disastrous
consequences.”
The REA continues to champion the delivery of new renewable power
capacity via six monthly CfD auctions and a three year rolling
time frame of future auction dates with sufficient allocated
budget.
