MP, Labour’s Shadow Energy
Minister, responding to Ofgem's announcement that
it will update the price cap quarterly and warning of a "very
challenging winter ahead", said:
“Millions of families face a cost-of-living
catastrophe this winter. The
Government should be preparing now for what's
coming but instead the Tory leadership candidates are retreating
ever further into their fantasy world, ignorant or uninterested
in the struggles that families across the country are facing.
“Meanwhile they are blocking new onshore wind and solar, the
cheapest, cleanest, quickest forms of energy we have, whilst
refusing to insulate homes to cut bills for good.
“While the Tories are asleep at the wheel, Labour has a plan to
insulate millions of draughty homes and kickstart a green energy
sprint to cut bills and ensure our energy security.”
The Association for Renewable Energy and Clean
Technology (REA) has responded to Ofgem’s confirmation
that price cap levels will now be updated every three months
instead of every six months, saying that while suppliers may be
given greater protections, consumers face a ‘devastating’ winter.
The change has been made by Ofgem so that prices charged to
bill-payers are a better reflection of current gas and
electricity costs. The REA says that the measure will give
greater protections to suppliers, ensuring that fluctuations in
wholesale prices are matched by the price cap.
However, the REA cites major concerns about what impact this will
have on consumers over the winter months, with large rises in the
price cap now expected for both October and January.
The REA has long called on the Government to take substantive
action, and believes that a great national effort over the coming
months to help reduce the demand for gas - the main driver of the
energy bill crisis - is imperative. The insulation of homes,
switching people from gas onto renewable alternatives and
decoupling power from wholesale gas are some measures proposed by
the trade association.
Amy MacConnachie, Director of External Affairs at the Association
for Renewable Energy and Clean Technology (REA), said:
“The theory behind Ofgem’s price cap announcements is
understandable, but we do have major concerns about what impact
this will have in reality.
“From a supplier point of view, this will give greater
protections to ensure that fluctuations in wholesale prices are
matched by the price cap. However, for consumers, this could be
devastating - to face two price hikes over the winter months will
hit many households and businesses incredibly hard.
“We have long urged the Government to take concrete action, but
while small pots of cash relief have been offered, the
fundamental problem hasn’t been tackled.
“Unless we see a great national effort over the coming months -
insulating homes, getting people off gas and onto renewable
alternatives, decoupling power from wholesale gas - this will be
an incredibly bleak winter.”
