Comment on Ofgem price cap increase
Commenting on the news that Ofgem is increasing both the default and pre-payment energy price caps, Dr Jonathan Marshall, Head of Analysis at the Energy and Climate Intelligence Unit (ECIU) said:
"Increasing the cap runs the risk of undoing one of the energy sector’s good news stories – that domestic bills have been falling in recent years as more efficient homes and appliances require less gas and power to run.
“It doesn’t have to be the end of the road for falling bills, however. Not only would implementing an ambitious energy efficiency scheme allow energy waste to be curbed, but rolling out renewable technologies that run on free wind and solar fuels rather than those sourced from global commodity markets would ensure that the UK is insulated from price shocks in the future.
“The government is only planning for the price cap to be a temporary measure, therefore it is convenient that the means of locking in lower bills for the long term are in plain sight."