Following on from announcements from Ofgem about significant rises forecast for energy prices, the Conservative Government has announced a major package of support for households and businesses. The support package will ensure that neither residents nor businesses face significant increases in their bills, giving certainty and stability over the winter months.
- An Energy Price Guarantee will be introduced from 1st October 2022. Lasting 2 years for households and 6 months for businesses, it will cap the price at which gas and electric can be sold at, with Government making up the difference between that rate and the global wholesale rates.
This means that a typical household will pay an average of £2,500 a year for energy, saving around £1,000 compared to forecasts for this year, and up to £2,000 of saving compared to forecasts for the period after. - The £400 energy bills discount will continue as planned. This will be applied to the energy bills of households from October, taking the annual price of energy down to £2,100.
- Businesses and public sector organisations will see similar support over the winter, with a review to take place before the end of 2022 on which sectors will need ongoing support with energy costs whilst global prices remain high.
- Those who use heating oil, including residents living in rural areas, will get comparable support.
- Residents using shared energy, for example those living in park homes, will also be supported.
As a result of these measures inflation is expected to peak at a much lower level than forecast, and economic growth will be supported.
To ensure that same problems do not reoccur plans have also been unveiled to fix energy supply in the UK. This will see:
- Domestic supply of oil and gas boosted, with more licencing for North Sea oil and gas.
- An end to the moratorium on fracking in the UK, with this permitted where it is supported locally.
- An acceleration of new sources of energy supply like nuclear, wind and solar.
- Continue progressing up to 24GW of nuclear by 2050, with Great British Nuclear helping to set the direction of getting new nuclear projects online in the UK.
- Given the altered economic landscape a review will be launched to ensure we are meeting our Net Zero 2050 target without placing undue burdens on businesses or consumers.
Commenting Antony Higginbotham MP said,
The reasons for the huge increase in energy costs might be global, but the impacts are being felt locally by families and businesses who are now worried about the future.
This clear plan of action, including the Energy Price Guarantee, will tackle these increases and shield residents and businesses right across our area. It means that families, and our local economy, are protected throughout the winter and beyond and comes on top of the £400 which residents will see applied directly to their bills from October through to March.
But we cannot get into this same position again and so fixing the underlying structural problems is also essential - including using more of our own oil and gas and getting that out of the ground. This plan will see our domestic energy production and supply increased, our energy security improved, regulation reformed and, ultimately, bill payers benefiting directly.
With the business support scheme running for 6 months, with a review on further supporting taking place before the end of the year, Antony is keen to ensure he is fully updated on the situation the local business community is facing. As such, Antony is asking all businesses in the borough, whatever their sector and energy situation, to complete his SME Energy survey at the link below.
