• REA has urged the Government to take action on energy bills after Ofgem predicts price cap will rise to £2,800; 
• Government intervention now a ‘moral and economic imperative’ – REA say short-term relief is critical;
• Need for a ‘national effort’ to insulate thousands of homes and install domestic renewables and clean tech before winter.

The Association for Renewable Energy and Clean Technology (REA) has urged the Government to take urgent action on energy bills, saying that there is a ‘moral and economic imperative’ for intervention.

The calls come after Jonathan Brearley, Ofgem’s Chief Executive, said the cap on household energy bills is to rise to about £2,800 in October. The increase in the cap would see the average bill increase by more than £800, after the regulator increased it by £693 in April to £1,971.

The REA have reiterated their calls for a package of measures which will bring immediate relief to household bills, while also highlighting the need to accelerate the wider energy transition to remove volatile gas prices from bills permanently.

These include moving ‘green’ levies into general taxation, suspending VAT on energy bills and expanding the eligibility and increasing the value of the Warm Homes Discount. 

In addition, extending the list of technologies included as Energy Saving Materials, establishing an effective home insulation scheme and delivering an ambitious domestic heat decarbonisation policy, are other key asks.

Dr Nina Skorupska CBE, Chief Executive of the Association for Renewable Energy and Clean Technology (REA), said:

“The situation is critical. Already we are seeing people having to skip meals, turn off the heating or struggling to pay for life-saving medical equipment – this devastating energy price cap rise will see millions of households fall deeper into poverty and push many more below the breadline.

“The Government has a moral and economic imperative to intervene with a substantial package to relieve pressure on energy bills. VAT on energy bills should be suspended and the Warm Homes Discount must be expanded, both in terms of value and eligibility. ‘Green’ levies also would be more appropriately sourced from general taxation.

“In parallel, we need a national effort to ensure as many households as possible can insulate their homes and increase the installation of domestic renewables and clean technology before the winter. A failure to do so will lead to disastrous consequences.”

The REA continues to champion the delivery of new renewable power capacity via six monthly CfD auctions and a three year rolling time frame of future auction dates with sufficient allocated budget.

—ENDS—

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Notes to editors

About the Association for Renewable Energy and Clean Technology (REA): The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the circular economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders. For more information, visit: www.r-e-a.net