Ofgem announce energy price cap will rise to £3,549

Reacting to this morning’s announcement by the regulator Ofgem that the energy price cap will rise from £1,971 to £3,549 this October, Mike Childs, head of science, policy and research at Friends of the Earth, said:

“Today’s news will be life-changing for millions of people. The government, and the two frontrunners to be Prime Minister, have had all summer to set out how they’ll shield households from these colossal price hikes, yet we still don’t have a credible plan.

“Decision-makers must urgently commit to much greater levels of emergency financial support and the rapid roll-out of a nationwide, street-by-street home insulation programme targeted at those who need it most.

“There are almost 5 million homes in England and Wales that lack even the most basic insulation measures, meaning too many households are paying through the roof to heat their homes. At this stage there’s no justifying the total absence of plans to improve the energy efficiency of UK homes, when it would help to slash energy use, reduce climate-changing emissions, and save households hundreds of pounds each year on their bills.”

ENDS

Notes:

1. Earlier this week, Friends of the Earth published new research revealing nearly 9,000 communities who will be most affected by spiralling energy costs. The ‘energy crisis hotspots’ release is here.

2. A Friends of the Earth briefing on the need for street-by-street energy saving measures, including insulation, can be viewed here. This briefing also contains a list of the 30 top local authority areas with the most energy crisis hotspots.

3. A full list of energy crisis hotspots by local authority area can be downloaded here.

4. In England and Wales there are 4.83 million homes that would benefit from loft insulation and there are 4.43 million homes that could be fitted with cavity wall insulation.

5. Friends of the Earth is also calling for a tougher windfall tax, without loopholes that allow fossil fuel firms to pay a much lower rate. This could help pay for a nationwide home insulation programme.