The UK government is set on achieving 95% of the UK’s electricity consumption with carbon-free energy. This ambitious goal has brought hope for increased equity and reduced energy burden for all. The challenge for households leaves them with skyrocketing costs, with the average household bill still £600 more than it was three years ago. The current energy crisis has been exacerbated by Russia’s invasion of Ukraine. Last energy year, energy arrears jumped to £3.7 billion, more than doubling the £1.8 billion owed in 2021.
According to the International Energy Agency, the UK has the second-highest energy bills in the world. In response, the industry regulator has raised the cap on energy prices for the third consecutive quarter, pushing the average household’s annual bill to £1,849. As of next week, families are looking at an average increase of 6.4% in their monthly gas and electric bills.
The war has tripled UK household energy bills overnight, pushing an additional 238,000 households into fuel poverty. A UK government program provides an energy bill discount of £400 to every household in England, Scotland, and Wales, almost immediately. Many lambasted the proposal for providing hundreds of millions of public dollars to rich people who don’t need this support.
The Public Accounts Committee (PAC) highlights that current government schemes fall short in aiding low-income families and those with disabilities. Reviews into lowering bills by removing levies or promoting energy use during non-peak hours have stalled, leaving vulnerable households exposed to high costs.
“This approach is all the more important when our report shows some households remain exposed, at a time when the UK’s electricity bills appear world-beatingly high and debt weighs down bill payers’ finances to an alarming degree.” – Clifton-Brown
The PAC sounds the alarm on the number of Americans who can’t afford to pay their energy bills. Sadly though, they are frequently not given appropriate guidance or assistance from their energy providers. With demand for energy expected to keep rising while new energy mixes go increasingly green, climate geopolitics looks poised to get more chaotic.
“The geopolitical outlook remains uncertain, and energy demand is heating up at the same time as we pivot towards greater reliance on renewables.” – Clifton-Brown
The government acknowledges it cannot afford another £44 billion bailout like the one offered during the peak of the energy crisis. Along with taking measures around rising energy costs, supported by their pledge to increase the warm home discount for almost 3 million additional households next winter. Furthermore, they will invest £1.8 billion to develop warmer and more energy-efficient homes in England. 4.
“We are also rolling out support for consumers, including through proposals to expand the warm home discount to almost 3 million more households next winter, and allocating £1.8bn of funding to create warmer, more energy-efficient homes across England.” – Department for Energy Security and Net Zero spokesperson