Responding to the announcement from Ofgem that the Energy Price Cap will rise for the third consecutive quarter to £1,849 from 1st April 2025, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“A particularly cold Winter in Europe, and concerns about low gas storage levels, have put additional pressure on gas prices, meaning that for the third consecutive quarter households in the UK will see their bills going up again. That they are still below the unprecedented highs experienced three years ago will be of little comfort to those who continue to struggle with the cost of living.
“Over the long run, it makes sense to reduce our dependency on volatile fossil fuel markets by continuing the shift towards renewables. But that should not preclude action in the nearer term to provide additional support for those vulnerable households who need it most. This could take a number of forms, including social tariffs, or increased support for energy efficiency improvements. Getting the balance right between securing the investment we need to hit the Government’s 2030 Clean Power targets and keeping bills down is going to be a key balancing act over the next few years.”
