The UK is too reliant on gas and is at risk of another sharp rise in energy costs fueling an ongoing cost of living crisis, according to an expert panel of industry leaders.
The Energy Crisis Committee has warned that the UK is “dangerously unprepared” for a new crisis as it continues to rely on gas for power plants and home heating.
The newly formed commissionThe group, made up of representatives from business groups Energy UK and CBI, and consumer groups Citizens Advice and National Energy Action, used its first report to find that little progress has been made in the expansion of home insulation and heat pump installations since then. I warned you that it wasn't. Britain's economy has been reeling from record petrol price increases.
The energy crisis began in late 2021, with soaring gas prices causing 29 household supply companies to go bankrupt, and Russia's full-scale invasion of Ukraine in early 2022, causing bills to soar and the UK government to intervene with bill subsidies. was forced to.
Adam Scorer, director of fuel poverty charity National Energy Action, said “the risk of a future crisis is real” and “those who cannot withstand price shocks will be hit hardest”. said.
The report revealed the crisis has had a “devastating” impact on British households. According to the report, the UK is the second most reliant country on gas for heating and the fifth most reliant on gas for electricity, meaning it pays more for its energy bills than many other European countries. was said to have been hit hard.
The report also highlighted the government's “untargeted” support scheme, which, according to the Office for National Statistics, cost the Exchequer more than £78bn but supported around 7.5 million households. has fallen into fuel poverty, leaving ratepayers £3.5 billion in debt. energy company.
Gillian Cooper, executive director of Citizens Advice, said: “Lack of preparation and missed opportunities have led to the energy market crisis. millions of households are directly feeling the devastating effects of the crisis.
David Laws, chairman and chair of Energy UK, said: “The UK has experienced periodic energy price shocks over the past 50 years, damaging economic growth and hitting both households and businesses. I am giving,” he said. Future oil and gas shocks seem inevitable, but the UK is still poorly prepared to absorb them. ”
The committee called on the government to prioritize moving the UK away from gas dependence to protect households and the economy from future energy price shocks. It called for the introduction of energy efficiency measures such as insulation and stricter efficiency standards in the private rental market to improve Britain's drafty homes.
It also called on the government to develop plans to move households away from gas heating by introducing more heat pumps and other low-carbon alternatives.
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The committee called on the government to reduce the UK's reliance on gas power plants in favor of low-carbon power sources and continue its work to support energy-intensive businesses to switch to clean energy alternatives.
Louise Hellem, chief economist at the CBI, said: “The energy crisis shocked the whole economy, affecting almost every business in the UK, with industry, small and medium-sized businesses and high street businesses particularly affected…Why the UK was particularly vulnerable to the energy crisis Addressing price hikes is essential not only to prevent a severe impact on consumers, but also on the economy as a whole. ”
Ed Miliband, Secretary of State for Energy Security and Net Zero, said: “This report shows that industry experts support making the UK a clean energy powerhouse, and this “This is a core mission of a Labor government.”
“Following the Conservative Party’s disastrous failure, we took decisive action. We overturned a nine-year ban on onshore wind in less than 72 hours and delivered the most successful renewable energy auction in history. He oversaw Great British Energy and took action to lift one million renters out of fuel poverty with new energy efficiency standards.”
