Business Secretary Kwasi Kwarteng
(Picture: PA Wire)The Conservative Party is planning a crackdown on wind and solar energy profits, reports have suggested.
Business and energy secretary Kwasi Kwarteng is set to take action with experts predicting the energy price cap will reach £6,000 next April.
The Telegraph reported on Sunday that energy consultancy Auxilione has said the energy price cap would hit the milestone after rising to £3,576 in October, and £4,799 in January before rising further and not falling until July.
These increases will mean bills could triple in 12 months’ time. With inflation set to reach 13 per cent, data has shown that 40 per cent of the public will either not be able to afford bills or will have to cut back on all but essential spending.
Mr Kwarteng is said to be looking to step in to stabilise the "crazy" profits of renewables firms - which are often on long term inflexible contracts. He is planning to offer these companies a top end fixed-term rate to sell energy for 15 years if they agree to stop selling cheap renewables at high prices.
Danny Kruger, who is opposed to renewable obligation contracts, told the Telegraph: “The government allows them to charge at levels set according to the highest production costs in the market, which means the cost of renewables is being set by the gas price - which is crazy.”
The government has so far committed to a £400 bill discount in October for 28million households. It has widely been reported that energy bills could rise to £4,400 a year for the average UK household from £1,900.
