Ofgem expected to lower energy price cap: comment

Commenting on expectations that energy regulator Ofgem will lower the energy price cap [1], Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit (ECIU) said: “While falling bills are a blessing for many, they are still 50% higher than pre-crisis levels and are predicted to stay higher because of the high gas price [2]. Instead of spending the last two-and-a-half years of the gas crisis investing in insulating homes to reduce bills, the Government’s existing energy efficiency schemes have flatlined and the Prime Minister even rowed back on insulation regulations for the private rented sector which will leave renters colder and poorer [3].

"There is not enough gas left in the North Sea to move the dial on internationally set prices so new licenses for UK oil and gas are a red herring. Lower bills and energy independence will come from reducing our gas demand, through insulating homes and moving away from gas boilers. That ought to be the priority of any Government that wants bills lowered and British energy powering British homes.”

ENDS

Notes to editors:

1. Ofgem is expected to announce its update to the energy price cap on Friday 23 February.

2. ECIU: Russia war anniversary. ECIU analysis found that, since the gas crisis began, the UK has spent an additional £75bn due to high gas prices: https://eciu.net/media/press-r...

3. ECIU analysis found that the Prime Minister scrapping the Minimum Energy Efficiency Standards in the private rented sector could mean that around 2.8m privately rented homes may not receive energy efficiency improvements: https://eciu.net/media/press-r...

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net