The cost of living crisis has prompted the boss of one of the UK largest energy supplies to put forward a 10-point-plan. Ovo Energy founder, Stephen Fitzpatrick, says action is needed now before the winter sets in.
The plan, published on the firm's website on Thursday, September 1, sets out short-term, medium-term and long-term proposals to the current crisis, adding: "At this stage, there are no perfect solutions". However, in the outline it says a "compassionate and creative approach must be followed to address the energy bill crisis".
Key proposals include immediate actions such as bringing forward the energy rebate so that it is paid in full before the December festive period and, in the medium-term, suggestions such as abolishing the prepayment meter, which the document describes as a 'poverty penalty'. Medium term proposals continue with the abolition of the standing charge to make bills "fairer" and "simpler".
READ MORE: 10 money changes for September including £326 cost of living payment
After highlighting that the UK's homes are some of the least energy efficient in Europe, the firm calls for a national energy efficiency effort, saying "insulate everything".
One of the key proposals in the plan is to allow energy firms to borrow from a government-backed fund, and then use the money to subsidise bills. The BBC reported that a similar proposal by Scottish Power to freeze energy bills for all at their current level was dismissed by the Treasury for giving the same relief to richer and poorer households. Under Mr Fitzpatrick's plan, everyone would get some assistance, but higher earners would see the amount of money received reduce, the more energy they used.
The document continues: "Introduce a carbon tax", is the proposal. It goes on to say: "Tax the profits of big oil and gas companies on an ongoing basis, rather than the one off gain we would get from a windfall tax. The revenue collected from a carbon tax should be used to protect the public from adverse cost impacts, and invested in decarbonisation".
In the short-term
- Bring forward the £400 energy rebate, which should be paid in full before Christmas
- Set up a Fuel Poverty Taskforce, identify those in most need
- Increase funding for debt advisory charities
In the medium-term
- Abolish the prepayment meter
- Reduce bill shocks - Subsidise bills though a Tariff Deficit Fund to be repaid over several years
- Make bills simpler and abolish the standing charge for customers
- Insulate everything - mobilise a national effort to insulate UK homes
In the long-term
- Secure long-term energy demand by establishing a single buyer for all UK energy needs
- Bring back the Department of Energy and Climate Change
- Introduce a carbon tax
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