Suppliers pile pressure on government over energy bills

Energy UK, the trade body representing Britain’s power suppliers, warned that immediate government action is required to prevent a deepening energy‑bill crisis this winter. Domestic gas prices rose on Thursday and forecasts predict a 16 % jump in household energy costs for the 20 million homes on variable tariffs subject to Ofgem’s price cap, pushing a typical annual bill from £1,723 to as much as £1,999 in January. Prime Minister Andy Burnham said the government is reviewing any measures that could ease the pressure, while EDF Energy chief Simone Rossi cautioned that the UK is “walking into a second energy crisis.” Energy UK chief executive Dhara Vyas called for targeted support beyond the £150 Warm Home Discount, including a discounted social tariff and debt‑relief schemes, to stop the surge in customer debt that now adds an average £67 to every bill.

The surge in prices stems largely from high wholesale costs driven by international events, notably the Middle‑East conflict and disruptions to shipping through the Strait of Hormuz, echoing the 2022 spike caused by Russia’s invasion of Ukraine. Although the government has already cut VAT on electricity and cancelled or shifted some levies, those reliefs have been erased by the soaring wholesale market. Energy UK highlighted that the growing debt burden—now affecting poorer households disproportionately—adds further strain, with charity National Energy chief Adam Scorer noting that more vulnerable families are slipping into serious debt levels, leaving them without breathing space or a viable future.

Burnham, speaking at the Labour Party conference, acknowledged Rossi’s warning and described the cost of home energy, petrol and diesel as “very difficult indeed,” pledging to consider any measures that can provide relief. Energy UK warned that last‑minute emergency interventions risk being poorly targeted and more costly, urging a proactive strategy that includes removing additional levies from electricity bills, shifting them to taxation, and advancing electrification. The industry’s plea underscores the urgency of preventing a repeat of the 2022 crisis, with the next wave of price‑cap increases poised to affect millions of households across England, Scotland and Wales if decisive action is not taken.

⚡ Effects Interpreter