https://morningstaronline.co.uk/article/never-ending-cost-living-crisis

Labour urged to reform energy pricing over surprise rise in bills

LABOUR was urged to reform energy pricing yesterday as unions and campaigners warned that a surprise 2 per cent rise in bills will hit 12 million homes already in fuel poverty.

GMB union hit out at the “never-ending cost-of-living crisis” after regulator Ofgem announced that the average household’s energy bill is to rise to £1,755 a year from October — despite wholesale prices falling by 2 per cent over the past three months.

Standing charges — the figure consumers pay per day to have energy supplied to their homes — are set to rise by 4 per cent for electricity and a whopping 14 per cent for gas, or 7p a day.

The 2.21 per cent year-on-year rise means average annual energy bills will be £713 higher than in winter 2020/21.

GMB national secretary Andy Prendergast said: “People are already struggling under a never-ending cost-of-living crisis.

“Any increase in energy prices could crash millions of household budgets.

“To make any green transition work, the UK has to be pragmatic: taking advantage of cheap gas prices to cut bills instead of subsidising heat pumps for the richest.

“The poorest in society must not be the ones who bear the biggest burden for saving our planet.”

Energy minister Michael Shanks blamed wholesale gas prices remaining 75 per cent above their levels before Russia invaded Ukraine. 

But End Fuel Poverty Coalition co-ordinator Simon Francis said: “We need urgent reforms to fix the broken pricing system, steps to ensure households benefit from targeted support for cold homes, a nationwide insulation and ventilation drive, reform of energy trading rules and lower standing charges.

“Meanwhile, expansion of renewables and upgrading the grid must be funded by investment or by tackling excess network and energy company profits, not by loading more costs onto struggling households.”

Pointing out that gas unit rates remain almost double pre-crisis levels and the cost of electricity in Britain is set by the most expensive generator — usually gas-fired power stations — he added: “It’s time for action — wind and solar are far cheaper ways of generating power and North Sea gas reserves are unable to meet domestic heating needs from 2027.”

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