Consumers are facing higher energy costs
(Picture: PA Wire)Energy companies, politicians and analysts have warned that consumers face a decade of higher gas and electricity bills amid widespread criticism of shortcomings in the government’s Energy Security Strategy.
Eon UK CEO Michael Lewis said the government plans “condemn thousands more customers to living in cold and draughty homes, wasting energy and paying more than they need to for their heating.”
Lewis was one of many industry figures to condemn the strategy for its lack of energy efficiency policy. He said efforts to improve the energy efficiency of homes were the “silver bullet” to tackle the current crisis, as it would cut bills and emissions, and reduce the UK’s reliance on foreign gas.
“By abandoning any extra commitment to helping people to improve their homes, today’s announcement condemns thousands more customers to living in cold and draughty homes, wasting energy and paying more than they need to for their heating,” Lewis said.
“There is little in today’s announcement that will deliver a solution this decade, let alone this year.”
Andrew Sissons at Nesta, the UK’s Innovation Agency, said: “The Energy Security Strategy is heavy on long term ambition and light on quicker, greener wins like clean heat and onshore wind.
“Crucially, there is very little in this plan that will quickly help people with soaring energy bills.”
Investec analyst Martin Young said the omission showed “a clear lack of ambition”, while EY sustainability partner Rob Doepel called it a “missed opportunity”.
The strategy sets out the government’s plan to boost Britain’s energy security, moving away from its reliance on potentially volatile international markets.
It promises “bold new commitments” on green energy, and faster expansion of nuclear, wind, solar and hydrogen power sources, as well as 40,000 jobs in clean industries.
Announcing the plans, Prime Minister Boris Johnson said the strategy would allow the UK to “enjoy greater energy self-sufficiency with cheaper bills.”
However, business secretary Kwasi Kwarteng admitted the plan won’t help families for at least three years.
Experts have suggested that it does not offer a solution to the current crisis. Consumers are facing a steep increase in their energy prices, potentially plunging millions into hardship.
Duncan Goodwin, fund manager at Premier Miton Global Sustainable Growth Fund, said: “With today’s announcement should come the realisation that a solution to the current energy crisis will take years if not decades.”
Darren Jones, who chairs the parliamentary Business, Energy and Industrial Strategy (BEIS) Committee, said the government was guilty of “just launching yet another policy” instead of taking action.
“Ministers continue to ignore the reality faced by millions of people with yet another missed opportunity to help bill payers and a failure to announce funding for the home insulation works required to reduce the amount of heating needed in the first place,” he said.
Earlier this morning, the Confederation of British Industry said the government should cut bills for energy intensive industries to maintain competitiveness, and kickstart a national programme for household energy efficiency upgrades.
