Responses to Ofgem price cap announcement

A Labour Party spokesperson, commenting on the energy price cap announcement, said:

“The Conservatives trashed Britain's energy security by leaving us exposed to global shocks and working people are still paying the price. From banning onshore wind to failing to deliver new nuclear, their reckless decisions sent bills soaring. 

“Labour is fixing the mess the Conservatives created, with our clean energy mission that will protect consumers and boost our energy security.”

Ends

Notes:

Despite 14 years in power, the Conservatives failed to protect Britain's energy security:

• The Conservatives blocked the cheapest form of new energy - onshore wind. Their effective moratorium on onshore wind, slashing of subsidies, and scrapping the zero-carbon homes standard was estimated to have made energy bills nearly £2.5bn higher over the past decade.
• By blocking hundreds of solar projects that had planning permission and were ready to go, the Conservatives destroyed the market for another of the cheapest forms of new energy.
• The Conservatives failed to get Britain's homes insulated, overseeing a 20-fold cut in installations over the last decade, leaving Britain with the draughtiest homes in Europe.
• The Tories took the disastrous decision to close crucial UK gas storage facilities in 2017. They refused to listen to warnings, giving the closure the green light, and washing their hands of responsibility.
• Labour identified 10 sites for new nuclear power in 2009, however the Tories sat on their hands for 14 years, and as a result not one new nuclear station was completed on their watch

Which? statement

Emily Seymour, Which? Energy Editor, said:

"With the temperatures at freezing this week, many households will be concerned that energy prices will remain high in the New Year.

"It's still worth shopping around for energy deals - look out for any that might be cheaper than the January price cap when it comes into effect. Unfortunately, there's no 'one size fits all' approach when it comes to fixing an energy deal - 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 cheaper than the price cap, not longer than 12 months and without significant exit fees.

"If you're worried about affording your bills this winter, don't suffer in silence. Speak to your energy company - they are obliged to help you if you're struggling to pay your bills."

Green Party

Reacting to the latest Ofgem price cap announcement, Green Party co-leader Adrian Ramsay MP said: 

“This is miserable news for those already struggling to make ends meet in the run up to Christmas and follows a 10 per cent rise in August. 

"The government's own figures show that its unnecessary decision to end universal winter fuel payments to help with bills will plunge 50,000 more pensioners into poverty next year. 

“The government must act. It says that its promised GB Energy will see prices fall – but when? It should support people to use less energy – and cut their bills – now. It should fund a national programme of council-delivered home insulation starting immediately.  

“Insulating people's homes means they can stay warm while using less energy, save money and produce fewer harmful carbon emissions.” 

Davey on Ofgem energy price rise: Freeze energy bills and reinstate Winter Fuel Payments

Liberal Democrat Leader Ed Davey has today called on the government to freeze energy bills so that Ofgem's newly announced rise in the price cap will not go ahead. 

He also called on the government to reinstate Winter Fuel Payments or risk pensioners being “left out in the cold” this winter.

Ofgem announced today that the energy price cap will rise by 1.2% to £1,738 a year in January, following the previous 10% rise in October. The Liberal Democrats are calling on the government to cancel this rise in energy bills so that households don't face even higher energy costs in the new year.

Liberal Democrat Leader Ed Davey said:

“Enough is enough. This further rise in energy prices cannot go ahead. As we enter another cold and difficult winter, many people simply can't afford to see their heating bills go up yet again.

“The disastrous government cuts to the Winter Fuel Payments coupled with this energy price rise will be a hammer blow for millions of vulnerable pensioners this winter.

“The new government must step in now, cancel this bill rise and reinstate Winter Fuel Payments to stop families and pensioners being left out in the cold this winter.

“This is a government that has pledged to bring down energy bills, it is time for them to live up to their word.”

ENDS

Notes to Editors:

Previous polling by the Liberal Democrats revealed the staggering number of pensioners who could be negatively impacted this winter with over half (55%) of pensioners saying that they expected to heat their homes less in the coming months and a fifth (19%) saying that they will eat less. It can be found here.

Statistics from the government showing 100,000 additional pensioners to be pushed into relative poverty due to the Winter Fuel Payment cut can be found here.

Britain Remade responds to planned rise in the energy price cap

Responding to the planned January rise in the energy price cap, Sam Richards, CEO of pro-growth campaign group Britain Remade, said:

“As huge swathes of the country are blanketed in snow or enduring sub-zero temperatures, the news that the energy price cap is set to increase once again at the start of next year will cause concern for households across the country. 

“To bring down energy prices, we must get as many wind farms, solar projects and new nuclear power stations connected to the grid as quickly as possible, but this can only be achieved if the Government slashes the time it takes to build economy boosting infrastructure. Keir Starmer and his ministers have made progress, but they must move much faster.

“We must also move away from the ‘one size fits all' approach to how energy is priced. Local pricing not only means those who live close to where energy is produced benefit from cheaper electricity, bills would be cut across the country.”