Industry Unites Behind Plan For Crisis Fund To Control Rising Energy Bills Energy Industry

Energy UK, the industry’s trade body, has written to the chancellor, Nadhim Zahawi, to back calls for a “deficit tariff regime” to be introduced as a long-term solution to the energy crisis. Under the plan, commercial banks would put cash into the Treasury, which suppliers could then draw on to freeze customer accounts at the current price cap of £1,971 for two years. The cost of the scheme will then be paid back over 10 to 15 years through a charge on bills or through taxation. But the plan could create a debt pile of up to £50bn, far larger than alternatives including Labor leader Keir Starmer’s £29bn plan to freeze the price cap. The intervention of Energy UK, which counts the industry’s biggest players among its members including EDF Energy, Ovo and National Grid, will add further weight to the proposals. The Treasury is assessing ways to support households with the cost of living crisis this winter, with plans to present the incoming prime minister with a menu of options once the contest to replace Boris Johnson ends on September 5. Energy regulator Ofgem is due to announce the level of the next industry price cap on August 26. Experts expect annual bills to hit £3,852 from October 1 and then hit £4,000 from January. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The Guardian revealed this week that Centrica and Ovo backed the idea, which had been presented to the government by other suppliers ScottishPower and E.ON. Dhara Vyas, director of advocacy at Energy UK, said: “Energy bills are set to remain high for the foreseeable future, so it will be critical that something is put in place to protect customers from them. A government-backed loan program could help do just that, spreading the cost from a highly volatile period of a few months over a much longer period. “The high cost of energy, due to record wholesale prices that continue to rise, is currently unavoidable. Suppliers need to recoup these costs or we will see more of them go out, adding more expense and disruption to customers. But that way we can deal with further increases before they hit customers’ bills.” The program will take time to build, with details unlikely to be finalized until early next year. Vyas said that in the meantime, the most practical way to provide emergency support this winter would be to increase the existing support program that Rishi Sunak announced in May. Energy UK argues that increasing the money handed out to the Energy Bill Support scheme – which will cut £400 from bills for all households over a six-month period from October – is the fastest way to “provide the support they need urgently customers in the future of Christmas.” Energy UK’s letter also called for an energy taskforce to be set up to study long-term ways to keep bills affordable for households and businesses. And he wants the government to consider creating a special energy department. The sector falls under the responsibility of the Department for Business, Energy and Industrial Strategy. On Wednesday, it was revealed that Ofgem chief Christine Farnish had resigned, accusing the regulator of favoring businesses over consumers with a rule change that would add up to £400 to the average UK household’s electricity bill.

title: “Industry Unites Behind Plan For Crisis Fund To Control Rising Energy Bills Energy Industry Klmat” ShowToc: true date: “2022-10-29” author: “Pablo Gailey”

Energy UK, the industry’s trade body, has written to the chancellor, Nadhim Zahawi, to back calls for a “deficit tariff regime” to be introduced as a long-term solution to the energy crisis. Under the plan, commercial banks would put cash into the Treasury, which suppliers could then draw on to freeze customer accounts at the current price cap of £1,971 for two years. The cost of the scheme will then be paid back over 10 to 15 years through a charge on bills or through taxation. But the plan could create a debt pile of up to £50bn, far larger than alternatives including Labor leader Keir Starmer’s £29bn plan to freeze the price cap. The intervention of Energy UK, which counts the industry’s biggest players among its members including EDF Energy, Ovo and National Grid, will add further weight to the proposals. The Treasury is assessing ways to support households with the cost of living crisis this winter, with plans to present the incoming prime minister with a menu of options once the contest to replace Boris Johnson ends on September 5. Energy regulator Ofgem is due to announce the level of the next industry price cap on August 26. Experts expect annual bills to hit £3,852 from October 1 and then hit £4,000 from January. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The Guardian revealed this week that Centrica and Ovo backed the idea, which had been presented to the government by other suppliers ScottishPower and E.ON. Dhara Vyas, director of advocacy at Energy UK, said: “Energy bills are set to remain high for the foreseeable future, so it will be critical that something is put in place to protect customers from them. A government-backed loan program could help do just that, spreading the cost from a highly volatile period of a few months over a much longer period. “The high cost of energy, due to record wholesale prices that continue to rise, is currently unavoidable. Suppliers need to recoup these costs or we will see more of them go out, adding more expense and disruption to customers. But that way we can deal with further increases before they hit customers’ bills.” The program will take time to build, with details unlikely to be finalized until early next year. Vyas said that in the meantime, the most practical way to provide emergency support this winter would be to increase the existing support program that Rishi Sunak announced in May. Energy UK argues that increasing the money handed out to the Energy Bill Support scheme – which will cut £400 from bills for all households over a six-month period from October – is the fastest way to “provide the support they need urgently customers in the future of Christmas.” Energy UK’s letter also called for an energy taskforce to be set up to study long-term ways to keep bills affordable for households and businesses. And he wants the government to consider creating a special energy department. The sector falls under the responsibility of the Department for Business, Energy and Industrial Strategy. On Wednesday, it was revealed that Ofgem chief Christine Farnish had resigned, accusing the regulator of favoring businesses over consumers with a rule change that would add up to £400 to the average UK household’s electricity bill.

title: “Industry Unites Behind Plan For Crisis Fund To Control Rising Energy Bills Energy Industry Klmat” ShowToc: true date: “2022-11-23” author: “James Gonzales”

Energy UK, the industry’s trade body, has written to the chancellor, Nadhim Zahawi, to back calls for a “deficit tariff regime” to be introduced as a long-term solution to the energy crisis. Under the plan, commercial banks would put cash into the Treasury, which suppliers could then draw on to freeze customer accounts at the current price cap of £1,971 for two years. The cost of the scheme will then be paid back over 10 to 15 years through a charge on bills or through taxation. But the plan could create a debt pile of up to £50bn, far larger than alternatives including Labor leader Keir Starmer’s £29bn plan to freeze the price cap. The intervention of Energy UK, which counts the industry’s biggest players among its members including EDF Energy, Ovo and National Grid, will add further weight to the proposals. The Treasury is assessing ways to support households with the cost of living crisis this winter, with plans to present the incoming prime minister with a menu of options once the contest to replace Boris Johnson ends on September 5. Energy regulator Ofgem is due to announce the level of the next industry price cap on August 26. Experts expect annual bills to hit £3,852 from October 1 and then hit £4,000 from January. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The Guardian revealed this week that Centrica and Ovo backed the idea, which had been presented to the government by other suppliers ScottishPower and E.ON. Dhara Vyas, director of advocacy at Energy UK, said: “Energy bills are set to remain high for the foreseeable future, so it will be critical that something is put in place to protect customers from them. A government-backed loan program could help do just that, spreading the cost from a highly volatile period of a few months over a much longer period. “The high cost of energy, due to record wholesale prices that continue to rise, is currently unavoidable. Suppliers need to recoup these costs or we will see more of them go out, adding more expense and disruption to customers. But that way we can deal with further increases before they hit customers’ bills.” The program will take time to build, with details unlikely to be finalized until early next year. Vyas said that in the meantime, the most practical way to provide emergency support this winter would be to increase the existing support program that Rishi Sunak announced in May. Energy UK argues that increasing the money handed out to the Energy Bill Support scheme – which will cut £400 from bills for all households over a six-month period from October – is the fastest way to “provide the support they need urgently customers in the future of Christmas.” Energy UK’s letter also called for an energy taskforce to be set up to study long-term ways to keep bills affordable for households and businesses. And he wants the government to consider creating a special energy department. The sector falls under the responsibility of the Department for Business, Energy and Industrial Strategy. On Wednesday, it was revealed that Ofgem chief Christine Farnish had resigned, accusing the regulator of favoring businesses over consumers with a rule change that would add up to £400 to the average UK household’s electricity bill.

title: “Industry Unites Behind Plan For Crisis Fund To Control Rising Energy Bills Energy Industry Klmat” ShowToc: true date: “2022-10-23” author: “Billy Whatley”

Energy UK, the industry’s trade body, has written to the chancellor, Nadhim Zahawi, to back calls for a “deficit tariff regime” to be introduced as a long-term solution to the energy crisis. Under the plan, commercial banks would put cash into the Treasury, which suppliers could then draw on to freeze customer accounts at the current price cap of £1,971 for two years. The cost of the scheme will then be paid back over 10 to 15 years through a charge on bills or through taxation. But the plan could create a debt pile of up to £50bn, far larger than alternatives including Labor leader Keir Starmer’s £29bn plan to freeze the price cap. The intervention of Energy UK, which counts the industry’s biggest players among its members including EDF Energy, Ovo and National Grid, will add further weight to the proposals. The Treasury is assessing ways to support households with the cost of living crisis this winter, with plans to present the incoming prime minister with a menu of options once the contest to replace Boris Johnson ends on September 5. Energy regulator Ofgem is due to announce the level of the next industry price cap on August 26. Experts expect annual bills to hit £3,852 from October 1 and then hit £4,000 from January. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The Guardian revealed this week that Centrica and Ovo backed the idea, which had been presented to the government by other suppliers ScottishPower and E.ON. Dhara Vyas, director of advocacy at Energy UK, said: “Energy bills are set to remain high for the foreseeable future, so it will be critical that something is put in place to protect customers from them. A government-backed loan program could help do just that, spreading the cost from a highly volatile period of a few months over a much longer period. “The high cost of energy, due to record wholesale prices that continue to rise, is currently unavoidable. Suppliers need to recoup these costs or we will see more of them go out, adding more expense and disruption to customers. But that way we can deal with further increases before they hit customers’ bills.” The program will take time to build, with details unlikely to be finalized until early next year. Vyas said that in the meantime, the most practical way to provide emergency support this winter would be to increase the existing support program that Rishi Sunak announced in May. Energy UK argues that increasing the money handed out to the Energy Bill Support scheme – which will cut £400 from bills for all households over a six-month period from October – is the fastest way to “provide the support they need urgently customers in the future of Christmas.” Energy UK’s letter also called for an energy taskforce to be set up to study long-term ways to keep bills affordable for households and businesses. And he wants the government to consider creating a special energy department. The sector falls under the responsibility of the Department for Business, Energy and Industrial Strategy. On Wednesday, it was revealed that Ofgem chief Christine Farnish had resigned, accusing the regulator of favoring businesses over consumers with a rule change that would add up to £400 to the average UK household’s electricity bill.

title: “Industry Unites Behind Plan For Crisis Fund To Control Rising Energy Bills Energy Industry Klmat” ShowToc: true date: “2022-11-15” author: “Leonard Barnes”

Energy UK, the industry’s trade body, has written to the chancellor, Nadhim Zahawi, to back calls for a “deficit tariff regime” to be introduced as a long-term solution to the energy crisis. Under the plan, commercial banks would put cash into the Treasury, which suppliers could then draw on to freeze customer accounts at the current price cap of £1,971 for two years. The cost of the scheme will then be paid back over 10 to 15 years through a charge on bills or through taxation. But the plan could create a debt pile of up to £50bn, far larger than alternatives including Labor leader Keir Starmer’s £29bn plan to freeze the price cap. The intervention of Energy UK, which counts the industry’s biggest players among its members including EDF Energy, Ovo and National Grid, will add further weight to the proposals. The Treasury is assessing ways to support households with the cost of living crisis this winter, with plans to present the incoming prime minister with a menu of options once the contest to replace Boris Johnson ends on September 5. Energy regulator Ofgem is due to announce the level of the next industry price cap on August 26. Experts expect annual bills to hit £3,852 from October 1 and then hit £4,000 from January. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The Guardian revealed this week that Centrica and Ovo backed the idea, which had been presented to the government by other suppliers ScottishPower and E.ON. Dhara Vyas, director of advocacy at Energy UK, said: “Energy bills are set to remain high for the foreseeable future, so it will be critical that something is put in place to protect customers from them. A government-backed loan program could help do just that, spreading the cost from a highly volatile period of a few months over a much longer period. “The high cost of energy, due to record wholesale prices that continue to rise, is currently unavoidable. Suppliers need to recoup these costs or we will see more of them go out, adding more expense and disruption to customers. But that way we can deal with further increases before they hit customers’ bills.” The program will take time to build, with details unlikely to be finalized until early next year. Vyas said that in the meantime, the most practical way to provide emergency support this winter would be to increase the existing support program that Rishi Sunak announced in May. Energy UK argues that increasing the money handed out to the Energy Bill Support scheme – which will cut £400 from bills for all households over a six-month period from October – is the fastest way to “provide the support they need urgently customers in the future of Christmas.” Energy UK’s letter also called for an energy taskforce to be set up to study long-term ways to keep bills affordable for households and businesses. And he wants the government to consider creating a special energy department. The sector falls under the responsibility of the Department for Business, Energy and Industrial Strategy. On Wednesday, it was revealed that Ofgem chief Christine Farnish had resigned, accusing the regulator of favoring businesses over consumers with a rule change that would add up to £400 to the average UK household’s electricity bill.