Responding to the announcement from Ofgem that the Energy price cap will rise for the second consecutive quarter to £1,738 from 1st January 2025, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“With most households remaining on default tariffs, news that there will be another rise in the energy price cap just as temperatures dropped significantly, will be unwelcome for many families as they turn their heating up and continue to struggle with the cost of living.
“A lot of the arguments put forward for the transition to clean power have been around the potential positive impact it will have on bills. While there is good evidence that bills will be lower and less volatile in the longer term*, there may well be pushback if people feel the transition to clean energy is costing them more in the near term – as we have seen in other countries. To avoid this, there needs to be a comprehensive policy response on affordability and bills, building on the Government’s Warm Homes Plan, alongside policies to accelerate the transition to green energy.”
