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Edinburgh Live
Edinburgh Live
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David Hughes, August Graham and William Janes, PA & Katie Williams

EDF Energy boss warns 'over half' of UK households could fall into fuel poverty

Bosses at EDF Energy has issued a stark warning as the price cap is set to jump again in October.

EDF managing director Philippe Commaret has warned that households face a “dramatic and catastrophic winter”, with more than half falling into fuel poverty, as experts forecast annual bills to rise to more than £3,500.

His comments came as the National Grid prepared to hold an exercise to test the resilience of the UK’s systems in the event of a gas supply emergency.

READ MORE- Edinburgh weather: Capital set for spike in temperatures next week reaching highs of 19C

While industry bosses and experts are urging the UK Government to intervene, bill payers will be told of the new price cap rate on Friday, August 26.

According to Mr Commaret, EDF is launching a campaign to help customers cut bills with energy-saving measures but the scale of the problem means further Government intervention is needed.

Speaking to BBC Radio 4's Today programme, he said: “We face, despite the support that the Government has already announced, a dramatic and catastrophic winter for our customers.

“In fact, in January half of the UK households might be in fuel poverty. That’s the reason why we want to take actions in order to do everything we can do in order to help our customers.

“So, we are announcing today that we are going to launch a campaign in order to reach hundreds of thousands of our customers to provide them further support to help them cut their costs, but also make sure that they are accessing all the available support that is available for them.”

Energy industry consultants Cornwall Insight have warned that households will face an 80 per cent rise in bills going into the winter period as the price cap will be confirmed on Friday. Prices are expected to hit £3,554 from October, then rise to £4,650 from January.

As PA news agency explains, between the coldest months of the year - October and April – the average household will pay an equivalent £4,102 per year for their gas and electricity. This would be a massive spike in comparison from today’s £1,971, which is already a record. Last winter the energy price cap was set at £1,138

While the Tory leadership contest continues, no immediate extra help will be announced by the UK Government until either Rishi Sunak or Liz Truss is voted in. Mr Sunak has pledged to remove VAT from energy bills, while Ms Truss has promised to cut green levies.

Mr Commaret said: “I think that all ideas in order to keep the bills for customers flat are really important and have all to be considered.

“There is not only one lever to be pulled but all levers have to be pulled right now because we face a catastrophic winter.”

Energy prices have been driven up following a surge in demand after the pandemic and easing of restrictions and the war in Ukraine has led to the economic isolation of gas-producing Russia. This has created a 'perfect storm' leading to uncertainty regarding an international supply.

Downing Street has insisted there is no need for consumers to panic and “households, businesses and industry can be confident they will get the electricity and gas that they need over the winter”.

But the BBC reported that a regular emergency planning exercise to help the UK prepare for the possibility of a shortage of gas supplies has been doubled in size.

The National Grid’s Exercise Degree will examine whether firms can appropriately respond to a gas supply shortage which has electricity system implications. The exercise will take place in two stages on September 13 to 14 and October 4 to 5.

However, the timetable for the event last year was set out in January, ahead of the Russian invasion of Ukraine, and is not related to the current energy market turbulence.

A National Grid spokeswoman said: “Exercise Degree is the latest in a long series of annual exercises which go back to 1996 when the network emergency co-ordinator role was created.

“The exercises enable National Grid gas, government and industry participants to test the effectiveness of industry-wide emergency arrangements in order to prevent, and (if unavoidable) respond to a gas supply emergency.

“The network emergency co-ordinator has an obligation to provide assurance to the HSE on the effectiveness of these arrangements. The pre-winter exercises take place every year ahead of winter and have become a routine part of the energy industry’s annual calendar.

“The arrangements for Exercise Degree were made back in January 2022.”

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