Ofgem issued ‘urgent’ warning by Ed Miliband
The letter coincided with an announcement from Ed Miliband that he has urged the energy watchdog Ofgem to crack down on the soaring costs of energy as the typical energy bill could soon rise by over £100 a year.
Most key energy analysts agree that energy costs will be increasing, with the large energy firms predicting that the price cap will increase this April by between five and seven percent.
The energy price cap is the maximum amount energy suppliers can charge for each unit of energy for those on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.
The energy regulator will announce its energy price cap for April to March on 25 February. Treasury sources have indicated that the new annual cap will be £1,846, up £108 from the current level. This would put it up £156 from the same time last year, and would be the highest it has been since January 2024.
Any energy increase would adversely impact Disabled energy consumers as Disabled people often have higher energy needs than non-Disabled people. Many Disabled people run the heating more to cope with having lower mobility or to prevent severe illness due to weakened immune systems, and we must pay for electricity to run essential medical and mobility equipment.
Writing to Ofgem’s chief executive Jonathan Brearley, Mr Miliband said there are steps Ofgem could take to combat the “rollercoaster” of global gas markets.
The energy secretary said, “In recent months we have seen once again the dangers for our country of being exposed to fossil fuel markets controlled by petrostates and dictators.” Adding that the UK is “highly exposed to these global gas markets.”
“Once again, the British people and British businesses will face the consequences of fossil fuel markets we do not control.”
He went on to say that Ofgem should crack down on inaccurate and large bills and bring forward proposals to introduce a zero-standing charge for consumers.
Commenting on the letter to Ofgem, Dan White co-lead of DPCG said, “It is fitting that on the day our DPCG letter arrived in the energy secretary’s inbox, that he should issue a warning to the energy regulator on pricing.”
“The disastrous situation that Disabled people find ourselves in, in terms of not being able to afford energy costs, should not be allowed to continue. Energy prices should not continue to rise, whilst an ineffective watchdog just shrugs it shoulders at the human catastrophe.”
“On average Disabled people spend 8% of our budget on energy, compared to 6% for non-Disabled households. That is an extra £634 a year, so while Mr Miliband insists on Ofgem sorting out energy issues, he needs to do more to get his own department to take action, including implementing an energy social tariff”