Ofgem's warning of future energy bill rises ? Consumer Focus

Published: 19 February 2013

Responding to Ofgem?s warning of future energy bill rises, Mike O?Connor, Chief Executive, Consumer Focus, said:?

?Keeping the lights on is a real challenge which the nation has to meet.? We need to invest but we also need to think about how we protect the most vulnerable consumers who can least afford higher prices.? In the long term the best hope is more energy efficient homes.? We need to do more to ensure our homes do not leak energy and we are calling on Government to use the funds they raise in carbon taxes to insulate our houses to modern standards, saving the poorest in society money on their bills, as well cutting carbon emissions and creating jobs.?

?With 6 million households in fuel poverty, rising to over 9 million by 2016, ?and an increasing proportion of our incomes being spent on essential items like energy, this latest news, while not surprising, is chilling.?

?Three things are vital:

1. We must focus not just on bringing new plant to market but on how we pay for the new investment. The trend is for bill payers, rather than tax payers or shareholders, to take the burden and risk. We must question whether that is right, and urge that the government to commit to the least regressive way to fund energy investment.
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2. Policy makers must put energy efficiency at the top of the list. Reducing demand by making homes and businesses more energy efficient is such an obvious first step that the lack of a really ambitious programme is?bewildering. Reducing demand is quicker, cheaper, more sustainable and solves the problem at source. A major energy efficiency programme should be financed by the billions we will pay on our bills in carbon taxation and would drive economic growth.
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3. As always, those who can least afford to pay will suffer the most. Millions of homes face their own security of supply crisis every day and many have to respond by staying cold. Facing the security of supply crisis means tackling fuel poverty as well.??

ENDS?

Notes to Editors?

See also blog post by Chief Executive Mike O?Connor on how we pay for essential infrastructure.

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Source: http://www.consumerfocus.org.uk/news/ofgems-warning-of-future-energy-bill-rises

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