The energy price cap is not the right way to tackle the ongoing crisis in the market.
That’s the view of the Association for Decentralised Energy (ADE), which calls on the government for more long-term support for consumers with rising bills.
Ofgem’s energy price cap becomes active today, with the previous limit of £1,277 each year per average household, rising to £1,971 – a £693 jump.
Energy prices have been on a continual rise since last year, with a combination of factors exacerbating the situation, including a substation fire connecting Britain to France in September and Putin’s ongoing invasion of Ukraine.
Energy consumers have become constrained as a result.
Lily Frencham, ADE’s CEO, commented: “Today will be a scary and stressful day for many households and businesses alike. Though the price cap has historically played a role in ensuring customers had a good experience, it is not – and will not be – the way to address the challenges the market faces.
“The best way to protect customers and to offer them a positive experience, in the long term will be through moving more quickly towards the net zero future we need.
“We need to accelerate deployment of measures we know work – such as energy efficiency, low carbon heat delivered through green heat networks and using flex to ensure we got the most out of the system – to insulate customers, bringing lower costs and higher comfort to people around the UK.”
Energy Live News has contacted BEIS for a response.