Karen Turner, Professor and Director of the Centre for Energy Policy at the University of Strathclyde, told ELN: “The government’s announcement that, along with businesses, support for households will now be reduced from two years to six months will concern many who were already worried about how they will pay their energy bills.
“Government needs to do two things. First, it must make clear as quickly as possible how it plans to protect the most vulnerable households from April 2023 onward with more targeted support.”
Following the Chancellor‘s announcement, consultancy Cornwall Insight warned that energy bills might rise above £4,000 a year in April.
Professor Turner continued: “Second, attention must focus on the deployment of the “Cost Plus Revenue Limit”, which aims to break the link between soaring gas prices and consumers costs of electricity.
“This would mean that all households and businesses at least have access to more competitive prices when the Energy Price Guarantee and Energy Bill Relief schemes end in April.
“Attention is also turning to what rates Ofgem will set its next energy price cap at, but government also need to consider what support needs to be in place to avoid businesses collapsing with potentially large-scale job losses and inflation spiralling.”