Ed Miliband is accused of breaking his election promise to slash energy bills as utility costs soar for a THIRD time by average of £111 a year_Nhy
Ed Miliband was last night accused of breaking his election promise to slash energy bills as millions of households face paying another £111 a year from April.
The Energy Secretary pledged during the election campaign that his controversial plan to decarbonise the electricity system by 2030 would reduce household bills by £300.
But yesterday, the regulator Ofgem announced the energy price cap will rise from £1,738 a year to £1,849 – 6.4 per cent – following a spike in wholesale prices.
The third consecutive rise will equate to £111 for an average household per year, or around £9.25 a month. It brings the average total rise in energy bills since Labour took power to £281.
Conservative energy spokesman Andrew Bowie last night said: ‘The latest hike in the energy price cap is a betrayal to the families who Ed Miliband promised to save £300 on their bills. Labour’s election promise is shot and bills are on the rise.
‘The Government are not being honest about the trade-offs required to fund their fantastical energy policies – it will be families who are hit with the bill.’
Mr Miliband said the price cap rise was ‘worrying news’ for many families but insisted that making Britain a ‘clean energy superpower’ would bring down bills.
He added that around 2.7million extra households, including nearly a million with children, would be eligible for the £150 Warm Home Discount next winter. This would bring the total number of recipient homes to more than 6million.
Ed Miliband (pictured) pledged during the election campaign that his controversial plan to decarbonise the electricity system by 2030 would reduce household bills by £300
‘This Government is determined to do everything we can to protect people from the grip of fossil fuel markets,’ he said.
‘The way to deliver energy security and bring down bills for good is to… make Britain a clean energy superpower with homegrown clean power that we in Britain control.’
Ministers are facing calls to scrap the energy bill rise for pensioners who have been stripped of their winter fuel payments.
Liberal Democrat leader Ed Davey said ‘the least they could do’ is ensure bills don’t rise further.
He added: ‘Thousands of vulnerable people have shamefully been left to choose between heating or eating this winter. The Government has got to get a grip on energy bills and fast.’
The regulator Ofgem announced the energy price cap will rise from £1,738 a year to £1,849 – 6.4 per cent – following a spike in wholesale prices
It came as the Government said it is consulting on offering more support to consumers facing an ‘unpredictable international energy market’.
The Department for Energy Security and Net Zero said one in five families would get financial help in the proposals.
Ofgem said 4million customers have moved to a fixed tariff since its last price cap announcement in November, meaning they will not be affected by the increase.
But Citizens Advice chief executive Dame Clare Moriarty said it was helping people every day who ‘simply can’t afford this latest price hike’, with a record 7million in debt to their energy supplier.
She added: ‘The Government can’t let another winter go by without targeted support for those most in need.
‘Our recent analysis found energy network companies made billions in excess profits while households have faced soaring bills, and it’s only right this money be used to help fund better-targeted bill support and much-needed debt relief.’
Q&A
What is the price cap?
The cap sets a maximum price that suppliers can charge consumers for each kilowatt hour of energy they use. Ofgem’s figures indicate what a household paying by direct debit can expect to pay if their energy consumption is typical. It does not limit bills because people still pay for the amount they use.
Why is it rising?
A spike in wholesale prices was the main driver, accounting for 78 per cent of the increase, said Ofgem. Reliance on international gas markets leads to volatile prices and continues to drive up bills, said Ofgem’s Jonathan Brearley.
Labour’s promise?
Decarbonising the electricity system by 2030 would reduce bills by £300, it claimed at the election. Yesterday, Ed Miliband insisted making Britain a clean energy superpower would bring down bills.
What help is there?
Ofgem has announced an extension of the debt allowance, which supports suppliers in helping consumers get on top of their bills and stay on supply. Ofgem has also urged people to make the most of any state benefits they are entitled to. Ministers are consulting on offering more support by expanding eligibility for the Warm Home Discount. Around 2.7million extra households, including nearly one million with children, will be eligible for the £150 discount next winter.
