• The REA responds to Ofgem’s announcement of the “devastating” energy price cap rise;
• The energy price cap will increase by more than 80% to £3,549 from 1st October;
• As well as calling for immediate front-line support from Government, the REA stresses the need for medium and long-term solutions to this crisis, such as delivering the renewable energy transition.

The Association for Renewable Energy and Clean Technology (REA) responds to Ofgem’s announcement today that the energy price cap will increase by more than 80% to £3,549 from 1st October, saying that this devastating hike will come as a hammer blow for many households, also leaving real uncertainty for businesses that are weighing up the economic impact over the coming months.

A combination of short, medium, and long-term solutions is crucial to mitigate this crisis, says the REA. Immediate intervention is required, such as expansion of the Energy Bills Support Scheme, but the long-term delivery of renewable generation, now by far the cheapest form of power generation, accompanied by making homes and buildings more energy efficient are also absolutely necessary.

Part of this solution will come from sustained focus on the current government Review of Electricity Market Arrangements (REMA), which has the longer-term potential to provide market reforms that will ensure consumers can benefit from low cost and secure renewable generation, helping to stabilise the energy market and lower bills for years to come.

The REA now calls upon Government to come forward immediately with a comprehensive plan, saying that no more time can be lost.

Mark Sommerfeld, Head of Power and Flexibility at the Association for Renewable Energy and Clean Technology (REA), said:

“This devastating hike in the energy price cap will come as a hammer blow for many households, and leaves real uncertainty for businesses that are weighing up the economic impact over the coming months. 

“It is clear that significant intervention is needed, with the expansion of support through the Energy Bills Support Scheme, one such example. A high-level expert panel must also be urgently convened to consider further options around the energy crisis.

“However, Government must not lose sight of the medium and long-term solutions to this crisis either. While up front support is imperative, so too is the necessity of delivering renewable generation, now by far the cheapest form of power generation, accompanied by making homes and buildings more energy efficient.

“The Government must also offer sustained focus on the current government review of the electricity market arrangements, which has the longer-term potential to provide market reforms that will ensure consumers can benefit from low cost and secure renewable generation, helping to stabilise the energy market and lower bills for years to come.

“We can ill-afford any more lost time – the Government must come forward with a comprehensive plan, fast.”

—ENDS—