Household energy bills are set to rise again in April, according to a forecast from energy consultancy Cornwall Insight. The group predicts that typical household energy bills will increase by £5, or 5%, to £1,823 (a £85 increase). This brings the average annual energy bill to £1,823 for a dual-fuel household, reflecting the third consecutive year of increased energy costs after high-octane gas prices in Europe.
Craig Lowrey, the principal consultant at Cornwall Insight, explains that households are under heavy pressure due to rising gas prices🌍. With wholesale gas prices increasing by 15% since the last energy price cap in January, higher fuel costs are forcing consumers to think more about their bills. He highlights that the British energy landscape is making it difficult for individuals to keep up with rising prices compared to the previous energy crisis caused by Russia’s invasion in February 2022. The price cap, which was introduced by the Government in January 2019, limits total bill figures, but doesn’t cap annual costs, as utilities still pay for energy consumption.
Mr. Lowrey underscores the need for investment in clean, reliable energy sources. He points to the slower-than-normal growth of renewable energy projects, specificallyWind and solar capacity, as a significant concern. Without these sources, the UK will face “more volatile than in recent time, with households bearing the brunt of cold weather and low gas storage levels across Europe. Energy prices are becoming more unpredictable, and households are holding the brunt for these changes.”
The expertise of Cornwall Insight is one of the routine claims with lower-priced gas companies. However, this trend is becoming more evident as the UK aims to exit its energy reliance on external fossil fuels with a 95% clean power target by 2030. The Department for Energy Security and Net Zero’s Ed Miliband emphasized that higher energy bills are “more volatile than it has been in recent years, as preferences, travel, and consumption vary widely.”
The Government’s push for clean, reliable energy continues to challenge the UK’s energy system. Over the past decade, there has been a decade of scaling down of existing renewable projects and a reliance on external fossil fuels. The risks of outpacing these challenges, especially in a volatile global market through Russia’s invasion in February 2022, lead to an increased energy bill burden.Emily Miles, the teaspoons expert, rejected the traditional outlook, stating that the need for a sustainable climate action plan is urgent to mitigate the rising costs.
The battle over energy security in the UK is not just about improving regulations and investing in clean energy. It is a question of whose responsibility it is to pay for it. Hardworking domestic energy users, international coal trading companies, and non-smoking appliances have pointed to the need for a British RENO (Research, Environment and Energy Action) to create a climate-neutral energy superpower. Without such investment, the UK risks being “left forever at the whim of the international market, which varies widely and is highly volatile. This would cause the energy costs to become increasingly unmanageable for everyone, including householders.”
