Britain’s most vulnerable are bracing for soaring energy bills this winter, as Ofgem is set to raise the energy price cap to £3,549 a year. And small businesses and district heating dwellers are falling through the cracks and could end up paying astronomical energy bills if the next Prime Minister does not act. Stephen Fitzpatrick, the boss of the UK’s third-biggest energy supplier – OVO Energy – says his ‘scheme’ – proposed to the government – could ease costs for poorer households.
Speaking on BBC Breakfast, he said: “We have discussed and spoken with the government about this type of tariff deficit mechanism – so a way of artificially lowering the price of energy for consumers to protect them from the worst of the price increase.
“The challenge we have now is that we don’t know how long the situation is going to last.
“It could be years of higher prices.
“One of the ways we think this could be done most effectively is to initiate a tariff deficit mechanism where we lower the price of energy, but we do it for a certain number of units per household in a lower price range that everyone has access to. at.”
“And on top of that, consumers will pay a heavy price,” Mr. Fitzpatrick said.
“And what that would mean is that it would disproportionately benefit low-income households, but at the same time encourage everyone to find energy savings.
“It would cost the taxpayer less money, and it would give more benefits to low-income households.”
The two Tory leadership candidates – Liz Truss and Rishi Sunak – are under increasing pressure to deal with soaring energy bills ahead of what could be a disastrous winter if the next Prime Minister does not act.
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Ofgem’s report, which announced an 80% rise in energy bills, sent shock waves across Britain.
Peter Matejic, chief analyst at the Joseph Rowntree Foundation, said of the October increase: “In all my years as an analyst, I have not double-checked an analysis as much as this, because she is so stunning that she feels wrong.
“It’s impossible to think that a carer or salesperson will have to scramble to find hundreds of extra pounds to pay for their heating or that someone’s entire income for an entire year will be less than their energy bill .”
If favorite Liz Truss fails to come up with a plan, money-saving expert Martin Lewis has warned on BBC Radio 4’s Today program that “lives will be lost”.
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. boss energy unveils plan for protect consumers worst rise in prices uk news