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THE new energy price cap has been described as “catastrophic” after it was confirmed by Ofgem.
The energy regulators announced that the energy price cap will increase to £3,549 per year for dual fuel for an average household from October 1.
This is the second rise in a year. At the start of 2022, the cap was set at £1,277 and rose £693 to £1,971 in April.
This means that prices will have almost trebled in the space of six months.
Councillors from across the political spectrum in Wokingham Borough Council are calling for immediate action.
Cllr Clive Jones, leader of the council and the Liberal Democrat parliamentary candidate for Wokingham, said: “This energy price rise is a catastrophe for families and pensioners in our area. Too many people here are already struggling to make ends meet and these frightening figures released today will simply be too much for many.
“This is catastrophic and completely avoidable. MPs in the Wokingham borough council area, that includes Sir John Redwood and Theresa May need to get back to Westminster right away and cancel this price rise. There is no time to waste.”
Cllr Jones is calling for a freeze on energy prices before the rises “wreak havoc” on people in Wokingham.
He added: “I’ve been stunned at just how little Liz Truss and Rishi Sunak have said on energy bills. It looks like the Conservative party is living on another planet.
“If they won’t cancel the price rise, then we urgently need a new government that will save local people from this cost-of-living emergency.”
Cllr Pauline Jorgensen, leader of the Wokingham Conservative group, said the “unprecedented” rises are a direct result of the war in Ukraine and resulting increases in international gas prices.
She said:“The government has recognised this and already paid grants to provide some help for people with the cost of fuel.
“I understand that both Conservative leadership candidates have said that they will bring in further assistance in an emergency budget in September which would provide more relief before the impact of further price rises on bills which will start in October.”
Cllr Jorgensen believes there are a number of tactics at the government’s disposal to tackle the issue.
She said: “I would like to see the government do more and to remove VAT on domestic fuel completely, this would help everyone in the country facing increasing energy costs.
“In addition there should then be further targeted assistance for the least well off through increases to universal credit, this would give residents far more certainty than one off payments do.
Cllr Andy Croy, Labour councillor for Bulmershe and Whitegates, fears the October price cap will force families to choose between heating and eating, adding: “and probably not doing either
adequately”.
He said: “Businesses will be forced to stop trading. Schools and other public institutions will be forced to slash spending in other areas, just to keep the heating on.
“This is a fully formed crisis. Cash will be sucked out of what is left of the high street as people
struggle to pay heating bills.
“It is a disaster.”
Cllr Croy supports the national Labour party’s call for a freeze on the cap at its current levels.
He said: “Labour is proposing to freeze the price cap at its current levels – to protect every family and institution from this disaster.
“Labour will also remove the standing charge on pay-as-you-go meters.
“It really is an abomination that people using these meters are forced to pay even when they
use no fuel. Labour’s plan to freeze will save households thousands of pounds and remove a lot of stress from everyone.”
Cllr Jim Frewin, independent councillor for Shinfield South, said the cap figure is extreme and will “undoubtedly” cause families significant financial stress.
Cllr Frewin said: “Various governments have tried to influence – tampered with – the markets but with little success or conviction.
“The energy market is driven by wholesale prices that could have been mitigated against with a proper energy strategy. For example the closure of the Rough storage facility was mostly politically driven, how we could do with that facility right now.
“Energy companies have been quick to raise prices to cover the wholesale rate and extremely slow to lower or indeed don’t lower at all.”
Cllr Frewin doesn’t believe that government handouts “will do anything other than mask the issue in the short term”.
He added: “We need a political will to collaborate with the industry to get a fair and equitable deal for customers.
“I look forward to seeing any of the political parties actually taking on the challenge of delivering a practical energy strategy that puts customers first and stems the greed taking across the market.”
