Responding to the announcement from Ofgem this morning that the Price Cap will increase 5% to £1,928 from January 2024, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“With no additional support on offer for most households this winter, another increase in energy prices will be cause for concern as we head into the coldest months of the year. With energy prices set to remain high for the foreseeable future, the only guaranteed way to get bills down permanently is to improve energy efficiency and speed up the deployment of renewables. Recent analysis by the National Infrastructure Commission suggests that households could pay £1,000 a year less for their energy bills over the medium term as we move to a Net Zero power system.
“Tackling energy efficiency in our leaky homes should therefore be top of the agenda, but there is also an urgent need to address some of the major barriers to get more renewables onto the grid. Recent Government announcements on renewables auctions and fast tracking the necessary grid infrastructure are a positive step in the right direction, but the reality is these measures are going to take some years to impact on energy prices, so will bring little comfort to those who won’t be able to heat their homes this winter.”
