KPMG responds to UK Government’s energy support package

Commenting on the measures set out today to support households and businesses with spiralling energy costs, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG said:

“In the face of unprecedented rising energy bills, there was no other option than for the Government to step in and provide direct financial support given the scale of the crisis facing many households and businesses.  Capping household bills at £2500 pa for average use is a huge intervention, yet bills will still be almost twice the levels of last winter.  A uniform price cap is also a blunt instrument and financial support won’t be directed on those who need it most. Many businesses will also be concerned about what happens after the six months of support the Government has promised today.

“Looking beyond the immediate support package, there appears an assumption that wholesale gas prices will start to fall back again next year, but this is in no way guaranteed.  The supply side measures announced, including on nuclear, fracking and North Sea oil and gas will take years to take effect.   There are cheaper alternatives available, like onshore wind and solar, which have overwhelming public support (Survation polling and MRP constituency analysis published 06/09/2022, commissioned by RenewableUK, shows that there is overwhelming public support for building new wind and solar farms to tackle the cost of energy crisis), and could be deployed much more quickly.   

“The absence of any serious attempt to reduce demand and improve energy efficiency is a major omission in the plans announced today. Britain has the least energy efficient housing stock in Europe: taking action to reduce demand, as is happening as a matter of urgency in other European countries, could reduce bills permanently, and lower our dependence on imported oil and gas.

“By failing to act on energy efficiency and by not harnessing all the cheapest forms of low carbon energy, this strategy is a missed opportunity to improve energy security, lower bills permanently and deliver Net Zero at least cost to consumers.”

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For further information please contact:

KPMG Media Relations

Claire Barratt

Mobile: +44 (0)7923 439264

claire.barratt@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.