- Today's
Government announcement will offer short-term relief to
households facing spiralling energy costs - a long standing call
from the REA;
- REA has said a
‘national effort’ is now needed to insulate thousands of homes
and install domestic renewables and clean tech;
-
Government must act now to improve energy efficiency and
reduce demand for expensive fossil fuels before winter.
The Association for Renewable Energy and Clean Technology (REA)
has welcomed new measures to try and counter spiralling energy
bills, but said the Government must now ramp up installation of
insulation and rollout of domestic renewables and clean tech.
The Chancellor today set out the Government’s plan to tackle the
cost of living crisis, to be funded by a windfall tax of 25% on
the profits of oil and gas companies. The proposals include:
scrapping the one-off, £200 loan deducted from energy bills to be
replaced with a £400 grant; households who receive means tested
benefits being given a one off payment £650; increasing the
winter fuel allowance for pensioners to £300 from £150; and £150
extra for those receiving non-means tested disability benefits.
The REA repeatedly called for support for households facing
increasing bills as part of the trade association’s six point plan to
tackle the energy crisis. The removal of VAT on domestic
renewable and clean technologies was also part of the six point
plan and introduced in the Chancellor’s Spring Statement in
March.
While the package announced today may bring some immediate relief
to household bills, the REA says this will only be temporary as
inflation continues to rise. Ofgem said on Tuesday the energy
price cap would increase to £2,800 in October, an increase of
£800, after the regulator already increased it by £693 in April.
The REA is now calling on the Government to lead a ‘national
effort’ to increase energy efficiency which includes extending
the list of technologies included as Energy Saving Materials,
establishing an effective home insulation scheme and delivering
an ambitious domestic heat decarbonisation policy.
The REA also reiterated their previous calls for the Government
to help accelerate the wider energy transition and remove
volatile gas prices from bills permanently.
Dr Nina Skorupska CBE, Chief Executive of the Association
for Renewable Energy and Clean Technology (REA), said:
“The REA has long called for Government intervention to
reduce the impact of spiralling energy costs and we welcome the
support which will now be provided to low income and vulnerable
households in particular.
"However, the measures announced today by the Chancellor will
only provide temporary and partial relief, with struggling
households facing unprecedented inflationary costs that aren’t
going away any time soon.
“The Government needs to go much further and, in addition to
short term cash, lead a national effort to ensure as many
households as possible can insulate their homes and install
domestic renewables and clean technology before the winter. This
will improve energy efficiency, reduce demand for expensive
fossil fuels and prevent damaging exposure to volatile global
prices.
“The situation remains critical - the Government has to
rapidly follow today's short-term relief with a package of real
substance."
