The energy industry has responded to Ofgem‘s confirmation of the new energy price cap with mixed reactions.
While there is acknowledgement of the relief it brings to consumers, concerns persist regarding the continued challenges posed by high energy costs and mounting debt.
Mike Thornton, Chief Executive at Energy Saving Trust, emphasised the need for a comprehensive approach to address energy security issues.
Mr Thornton said: “While we know that improving energy security is high on the political agenda this election year, current and proposed policies in these areas are missing the mark.
“Rather than making long term commitments to improve the UK’s inefficient housing stock, we’re seeing roll backs and watering down from all sides.
“All parties need to recognise that providing people with financial incentives underpinned by independent, personalised advice, will enable and empower them to actively engage in upgrading their homes to permanently lower energy bills and carbon emissions.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, welcomed the reduction in energy costs but cautioned that the impact of previous high prices would linger for years.
“We know more than five million people live in households behind on their energy bills and, with the price of energy still far higher than just three years ago, many people will struggle to pay off these debts.
“The government promised a new plan for energy bill support by April 2024 but will miss its own deadline.
“And the withdrawal of cost of living payments this spring will make it so much harder for many of those already finding it difficult to make ends meet. Without action, people will face a cycle of winter crises year after year.”
Daniel Portis, Deputy Director of Energy UK, echoed sentiments of relief over the price cap reduction, acknowledging the much-needed respite for customers amidst years of high energy bills.
However, Portis pointed out that bills still remain higher than previously considered normal, posing challenges for millions of customers.
Mr Portis said: “Bills are higher than what had previously been considered the norm so paying these will still be a challenge for millions of customers, in addition to the growing debt problem across the sector which has reached record levels.
“Suppliers will continue to do all they can to help customers in difficulties but there remains the need to look at providing greater targeted support so that bills are affordable for everyone while also cutting costs through making more homes energy efficient and getting more of our power from cheaper, clean domestic sources.”
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