The UK might face high energy bills again because it still depends on gas
Energy crisis panel warns the country is not ready and needs to move away from gas quickly
Britain is at risk of facing another big rise in energy costs, which could make the cost of living crisis worse because the country depends too much on gas, according to a group of experts.
The Energy Crisis Commission says the UK is still “dangerously unprepared” for another crisis because it relies on gas for electricity and heating homes.
This new commission includes members from business groups like Energy UK and the CBI, as well as consumer groups like Citizens Advice and National Energy Action. In its first report, the commission warned that not enough has been done to improve home insulation and to install heat pumps since gas prices hit record highs.
The energy crisis started in late 2021 when gas prices rose, leading to 29 energy suppliers going out of business. The situation worsened in early 2022 when Russia invaded Ukraine, causing bills to rise sharply, and the UK government had to help cover costs.
Adam Scorer, the leader of National Energy Action, a charity that helps people with fuel poverty, warned that “future crises are likely” and will affect those who can least afford it.
A recent report showed that the energy crisis has had a “terrible” effect on British families. People in the UK who pay energy bills have been hit harder than those in many other European countries because the UK relies heavily on gas for heating and electricity.
The report criticized the government’s support program, which cost over £78 billion but still left about 7.5 million families in fuel poverty and caused £3.5 billion in debt to energy companies.
Gillian Cooper from Citizens Advice said that being unprepared and missing chances made the energy crisis worse. Slow progress on green upgrades, problems with energy suppliers, forced use of prepayment meters, and lack of targeted support have left many families struggling.
David Laws, chair of Energy UK, noted that the UK has faced energy price shocks for the past 50 years, hurting economic growth and affecting both families and businesses. Future oil and gas price shocks are likely, but the UK is not ready to handle them.
The commission urged the government to reduce the UK’s dependence on gas to protect families and the economy from future price shocks. They suggested improving energy efficiency in homes, like adding insulation and stricter standards for rentals, and creating a plan to replace gas heating with heat pumps or other low-carbon options.
The commission asked the government to keep working on reducing the UK’s dependence on gas power plants and to support energy-intensive businesses in switching to cleaner energy sources.
Louise Hellem, the CBI’s chief economist, said, “The energy crisis affected almost every business in the UK, especially industries, small businesses, and shops. It’s important to understand why the UK is vulnerable to rising energy prices so we can protect consumers and the overall economy.”
Ed Miliband, the secretary of state for energy security and net zero, said, “This report shows that experts support making Britain a leader in clean energy, which is a key goal for this Labour government.
“After the Conservative government’s failures, we have acted quickly. We ended the nine-year ban on onshore wind within 72 hours, led the most successful renewable energy auction ever, created Great British Energy, and helped 1 million renters escape fuel poverty by improving energy efficiency standards.”
Published: 15th October 2024
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