OFGEM’s announcement that the energy cap will see household energy bills rise by up to £153 a year is just the news we didn’t need. October 2021 now looks to be the season of the triple hit: winter energy use, the £20 a week Universal Credit cut, and now the energy cap rise. Following over a year of pandemic and economic uncertainty, and with the furlough scheme tapering down, this news will make many people many anxious about the months ahead.
Government spokespeople will say that the cap is a back-stop for the market, and that people can always switch provider. But the cold reality is that yet again it is the poorest paying for deeply flawed energy and housing policy.
There are often loads of reasons why people can’t switch their energy providers, many linked to the consequences of poverty: debt, stress, adverse previous experiences resulting in a loss of confidence and ill health. Never mind pre-payment customers, who typically are some of the most deprived, frozen out of the market by a lack of providers.
Because of a decade of poor policy, the cap is a plaster on an open wound. Our lack of energy autonomy and our dependency on global fossil fuel markets has made us vulnerable to the macro energy challenges which are now being blamed for this rise. But we would be far better insulated against these fluctuations if we generated more of our own renewable energy.
The failure is compounded by the Government’s housing policy. The narrow rails around the warm homes grant aren’t good enough. We need support for homeowners at scale to improve the energy efficiency of our homes. After all, the cheapest energy is the energy you don’t use.
Had the national government invested to generate renewable energy in the UK, home energy efficiency, and supporting a workforce transition then we wouldn’t be in this exposed position we find ourselves in this winter.
The solution is out there and it’s been there for decades. With less than 100 days until world leaders meet at COP26 to discuss the climate emergency, we are left wondering how much longer our poorest will left be picking up the bill for this inadequate approach to powering the UK.