Gillian Charlesworth, CEO of the Building Research Establishment (BRE), commented on the news that Ofgem has increased the energy price cap to £3,549 per year for a dual fuel average home, from 1 October 2022.
“Today’s news from Ofgem and the ensuing impact on energy costs will plunge thousands more households and businesses into financial difficulty. This will be worsened by the ongoing cost of living crisis as inflation and interest rates rise across the board.
“While there are important short-term actions that people can take to reduce their energy bills, this will not be sufficient to counter the 80% rise in energy bills coming on 1 October. With the energy price cap forecast to rise to over £6,000 by April, the Government must act now to reduce our demand for natural gas and shield consumers and businesses from future energy price shocks.
“Improving the energy efficiency of our homes and buildings is one of the only viable ways to do this. The UK has one of the oldest and draughtiest building stocks in Europe – a fact which unnecessarily inflates our demand for natural gas and, ultimately, leads to higher bills.
We must combine investment in energy efficiency measures with a switch to renewable generation: a clean power supply made for Britain, by Britain
Insulating our buildings is a simple and cost-effective solution to prevent energy bills from spiralling further and ensuring households and businesses see immediate savings year-on-year.”
“It is also essential that the next Prime Minister ensures that any changes to the Green Levy do not result in cuts to energy efficiency schemes like the Energy Company Obligation (ECO), which are currently protecting the most vulnerable households from fuel poverty.
“Looking forward, we need a long term solution to the energy price crisis which shows no signs of abating. To break the link between global gas prices and the electricity bills we all pay, we must combine investment in energy efficiency measures with a switch to renewable generation: a clean power supply made for Britain, by Britain.”