Energy companies around the UK are now warning the UK government that bills could increase by close to £100 a year if new green energy schemes come into play. Due to this, these companies are urging the UK government to rethink these schemes before it is too late.
Right now energy prices in the UK are a hot topic. Every month, more families fall into fuel poverty and they just can’t seem to stop these rising bills. During the winter it was bad because some families were forced to choose between food and heating for their homes. The government tried to lessen this blow by forcing energy companies to make homes more energy efficient. However, recent reports show that not all energy companies reached the goal that was set by the government. This hit lower income families the hardest, as they were the ones who couldn’t afford to make these changes to their homes themselves.
This £100 increase would be close to double the amount of money the Energy Department predicted for the Energy Company Obligation act that was launched in January of this year. This was the same act that forced all energy companies to make homes more energy efficient. This was done by installing more insulation and by fitting homes with smart meters.
One senior executive at a leading energy supplier, who did not want to be named, said that this move by the government is going to do nothing more than worsen the problem. There is a lot of evidence already that this scheme by the government is going to raise prices a lot more than what they expect. This is going to make it even harder on families in the UK. People are already seeing some loft insulations costing close to 400 percent more than what the government said it would. This scheme is going to be a lot more expensive than the £53 the government predicted. It is going to turn out to be about double that.
The only way that this unnamed senior executive can see the government fixing this problem is to take this scheme and put it under further review. They need to make it more cost-effective for people. If the goal is to reduce fuel poverty in homes, they need to work on lowering bills, not increasing them.