With the government‘s bill support ending in April next year, all eyes are on the money households and businesses would need to spend on energy.
Moments after the Chancellor‘s announcement yesterday, consultants predicted that the average consumer would pay £4,348 per year from April to June 2023.
Cornwall Insight forecasts that this price cap level is likely to fall to £3,697 in July.
Several organisations raised concerns about the end of the Energy Price Guarantee (EPG).
Henry Gregg, Director of External Affairs at Asthma + Lung UK, said: “Removing the EPG will spark fear in people living with long-term lung conditions, such as asthma and COPD, who need to keep their homes warm to survive.
“Millions of people in this country are already living in fuel poverty and an end to the bill freeze in April negatively impact many, many more.”
Dhara Vyas, Director of Advocacy at Energy UK, said: “Amending the design of the scheme to target those in most need will take time and need careful consideration – which is why a universal approach was the most practical option for this winter.”
Responding to Chancellor’s statement on fiscal plans, CBI Chief Economist Rain Newton-Smith said: “The Chancellor is acting swiftly and firmly in looking to restore confidence to markets and businesses.
“Macroeconomic stability is the number one priority right now – the pre-condition to economic growth. Businesses will work closely with the Chancellor on an affordable plan for sustainable economic growth that drives investment and supports living standards.”
Commenting on the Treasury-led review on government energy bill support after April 2023, Jonny Bairstow, Head of External Affairs at the Association for Decentralised Energy, said: “A Treasury-led review into how consumers will receive financial support for their energy bills going forwards is an important step forward, but government must be aware that direct financial support alone is not nearly enough.
“If we are to permanently tackle the energy price crisis, we need actual long-term solutions to reduce demand ahead of this winter, in the form of immediate energy efficiency deployments and widespread public awareness campaigns.”
