Comments on energy/cost of living support package
Comment from ECIU's Jess Ralston and Prof. Michael Grubb on cost of living support package.
By George Smeetoninfo@eciu.net
Information on this page correct as of:
Commenting on the energy measures included in the Treasury cost of living support package announced today Jess Ralston, Senior Analyst at the Energy and Climate Intelligence Unit (ECIU) said:
“One off payments to the most vulnerable will help to ease some worries about energy bills this winter. But the glaring omission from the Chancellor was a lack of a plan for home insulation, and with Ministers admitting that Treasury is blocking investment into energy efficiency, what will happen with household bills next year, beyond a stop-gap windfall tax?
“Temporary solutions are a sticking plaster and all estimates show gas prices will be high for years to come, so investing in insulating our leaky roofs and walls makes the best long-term use of taxpayers money. Reforming the energy market to detach expensive gas from wholesale electricity price is a logical, necessary step that will drive down bills, especially given how much cheaper wind and solar generation is today.”
Michael Grubb, Professor of Energy and Climate Change & Deputy Director, UCL Institute for Sustainable Resources, said: “After resisting for months, a windfall tax was becoming inevitable. The first focus will be on the government plans for redistributing the revenue. But a second question is now also unavoidable. What will the government do with the UK energy system?
“Our electricity market means that consumers pay doubly for the high cost of gas – once through heating, and again through the impact of gas on electricity prices, even though renewable energy is now far cheaper. It is the system itself that needs bold measures: to invest in energy efficiency, remove removal of obstacles to the cheapest and quickest renewables available, and reform how the market works.”
Notes to editors:
1. Millions of most vulnerable households will receive £1,200 of help with cost of living: https://www.gov.uk/government/news/millions-of-most-vulnerable-households-will-receive-1200-of-help-with-cost-of-living
2. Professor Michael Grubb also sits on ECIU’s Advisory Board.
For more information:
George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: email@example.com